Jewellery upto 500 gms per married lady and 100 gms per male member cannot be seized at the time of search and is also considered to be explained:

A search took place at the residence of the assessee and certain jewellery was found. AO didn’t consider the plea of the assessee that such jewellery was received on marriage and various other auspicious occasions. He therefore allowed benefit of 200 gms of jewellery per married lady and 100 gms per male member and made an addition in respect of the access amount towards unaccounted investment in jewellery. Hon’ble ITAT took a view that as per CBDT’s instruction no.1916, jewellery to the extent of 500 gms per married lady and 100 gms per male member is considered to be reasonable for not seized at the time of search. Further, it was also mentioned that various High Courts have interpreted this limitation of seizure as explained as jewellery received by them on marriage and other occasions. In light of the above, the Hon’ble ITAT upheld the order of CIT(A) deleting the said addition.

[ACIT Vs. YASH DEVENDRA VAYLA – ITA No.652/Ahd/2010]