“unexplained jewellery”

In search assessments under section 153A, a notice under section 143(2) is not required if a notice under section 153A(1)(a) has been issued. Modest or customary jewellery, commensurate with age and status, found during a search, especially if it is 'Stridhan' or falls within CBDT guidelines, cannot be added as unexplained income.

Jewellery found within the CBDT prescribed limits (500g for married women, 250g for unmarried women, 100g for men) cannot be seized, even if not fully explained. However, its value can be added as undisclosed income under Section 69B if the taxpayer fails to prove its source.

Disallowance of expenses cannot be made if their genuineness is not challenged. For unexplained money, possession of gold jewellery by married ladies up to 500 grams is considered explained.

Jewellery found during a search that is adequately explained as being owned by a married lady for a long time, even without documentary evidence, should not be added to income, as this recognizes realities of life.

Jewellery found in possession, to the extent permitted by Instruction No. 1916 (which exempts up to 100 gms of gold for unmarried male members), cannot be treated as an undisclosed investment.

Jewellery within prescribed limits, especially that received during marriage, is presumed explained even if found during a search, based on CBDT instructions. The revenue cannot treat such jewellery as unexplained income simply because it was found.

Jewellery up to prescribed limits (e.g., 500 grams for a married lady, 100 grams for a male member, as per CBDT Instruction No. 1916) is presumed to be explained. The revenue must rebut this presumption to treat such jewellery as unexplained.

Unexplained jewellery found during a search can be added to income, even if the assessee claims it was received back against purchase bills, especially when part of the unaccounted cash is deposited in the bank.