Jewellery holding up to permissible limits prescribed in CBDT circular is allowable

DCIT Vs Raja Sundaram (ITAT Chennai) ITAT Chennai held that addition as unexplained investment for quantity of jewellery within the permissible limits as per CBDT instruction no. 1916 dated 11.05.1994 is unsustainable. Facts- Revenue has preferred the present appeal protesting deletion of addition of Rs. 7.67 lacs which represented unexplained investment in jewellery. As per valuation report, gold jewellery of 815.10 grams and 19.41 carats of diamonds worth Rs.29.24 Lacs was found. Most of the jewellery was stated to be gifted by assessee’s father on the occasion of marriage in the year 2000...