The Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) eliminated the additional assessment under section 69 of the Income Tax Act, following the declaration of 719 grams of jewellery found in the locker as Stri Dhan, received from the assessee’s parents.
During the operation of the locker at New Delhi Vaults Limited, jewellery weighing 719.916 grams, valued at Rs. 27,34,231/-, was discovered. The assessee was then called upon to explain the origin of the jewellery and provide reasons why it should not be taxed as unexplained investment under Section 69 of the Act.
In response, the assessee, a lady submitted a comprehensive explanation stating that the jewellery in question constituted Stri Dhan, received during her marriage and various festive occasions from her parents, in-laws, and other close relatives.
Counsel for the assessee, Mr. Gaurav Jain, elaborated on the family background of the assessee and her husband, emphasizing their well-established financial status and the cultural tradition of possessing such jewellery. Notably, the search and seizure took place more than 15 years after the assessee’s marriage.
The record indicated that the assessee and her husband were highly educated and held prestigious positions, including holding a green card in the USA. Furthermore, the assessee’s father-in-law had a distinguished career as a Senior IAS officer, holding prominent government positions.
The tribunal, comprising Yogesh Kumar ( U.S ) and N.K.Billaya ( Accountant member ) stated that “Considering family background of the assessee possession of 719.91 grams gold jewellery cannot be ruled out. Considering the facts in totality we do not find any merit in the impugned addition we accordingly direct the AO to delete the same.” In the result, the appeal of the assessee is allowed.
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