Income Tax
Hyderabad ITAT Deletes Entire Jewellery Addition in Search Assessment Citing CBDT Instruction No. 1916
Originally reported by Taxguru Income Tax as: Income Tax | CBDT Instruction No. 1916: ITAT Hyderabad Deletes Entire Jewellery Addition in Search Assessment
14 Nov 2026, 12:42 am IST · Xecute.finance News Desk
The crisp read
The ITAT Hyderabad deleted an entire jewellery addition made during a search assessment, citing CBDT Instruction No. 1916. The tribunal granted relief by applying established CBDT limits on seizing household gold during searches. Tax practitioners must cite CBDT guidelines when challenging unjustified jewellery additions.
Xecute Impact Breakdown
For CAs
- Review seized inventory against CBDT Instruction No. 1916 limits before appellate forums to protect client interests.
- Raise CBDT Instruction No. 1916 to ensure appropriate relief against arbitrary additions on family gold holdings in search and seizure matters.
For businesses
- Assessees facing additions on family gold holdings receive substantial relief as ITAT Hyderabad deleted the entire addition made towards seized jewellery in a search assessment.
- Ensure seized quantities are cross-verified against CBDT guidelines to prevent tax authorities from treating holdings within permitted thresholds as undisclosed income.
Deep dive - the full story
The Income Tax Appellate Tribunal (ITAT) Hyderabad deleted the entire addition made towards seized jewellery during a search assessment, relying on CBDT Instruction No. 1916. The order provides substantial relief to assessees facing additions on family gold holdings. CBDT Instruction No. 1916 establishes safe harbor limits for holding household jewellery during search operations, acknowledging customary possessions based on family size and status.
When seized quantities fall within these permitted thresholds without contrary evidence, tax authorities cannot treat them as undisclosed income. Chartered accountants and tax advisors handling search and seizure matters should review seized inventory against CBDT Instruction No. 1916 limits before appellate forums. Raising this specific instruction ensures appropriate relief against arbitrary additions.
Bottom line: Always cross-verify seized jewellery against CBDT guidelines to protect client interests.
Source: taxguru.in
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