Silver Articles given to Bride can’t be seized: ITAT Liberally Interprets CBDT Instruction [Read Order]

Silver Articles - Taxscan

While applying a liberal approach to interpret the CBDT circular imposing restrictions on the seizure of jewellery, the Income Tax Appellate Tribunal (ITAT), Indore bench has held that the silver articles given to the bride as per the Indian customs and tradition cannot be seized by the income tax authorities.

The department seized some jewellery and silver articles belongs to the appellant after the search proceedings. The first appellate authority, in view of the CBDT instruction No.1916 dated 11.5.1994 released the jewellery. However, the authority refused to release the silver articles weighing 609 grams and 280 grams by holding that the CBDT instruction directs the income tax authorities conducting the search not to seize the jewellery ornaments found during the course of search of varying quantity specified in the instruction depending upon the marital status and gender of the person searched.

On the second appeal, the Tribunal noted that the authority ignored the fact that in the Indian customs and traditions at the time of marriage silver utensils are also given to the bride.

“It is quite possible that the word silver utensils were not included in the CBDT instructions because at that point of time silver utensils were not coming under the category of capital assets. In our considered view Ld. CIT(A) ought to have taken a liberal approach by giving the benefit to the assessee for the value of gold jewellery and value of silver utensils held by her, within the monetary limit of value as on the date of search of the gold jewellery ornaments and permitted to be held, as provided in the CBDT Instruction No.1916 dated 11.5.1994. We accordingly direct the Ld.A.O to delete the addition of Rs.34,495/- made for Assessment Year 2015-16 for silver utensils found in the locker owned by the assessee. Accordingly, Ground No.2 for Assessment Year 2015-16 stands allowed.”

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