Another Women Friendly Ruling by ITAT: Gold Jewellery up to 500 grams for Married Women can’t be added to Taxable Income [Read Order]

Yet another women friendly ruling was given by the Delhi Bench of Income Tax Appellate Tribunal (ITAT) wherein it was held that the Gold jewellery up to 500 grams for married women cannot be added in taxable income.

The assessee, Suresh Bansal is an individual and was deriving income during the assessment year 2013-14, from salary, agriculture and from other sources. There was a search and seizure operation at the residential as well as business/office premises of M/s SRS group, in the case of assessee during which jewellery worth Rs. 66,31, 229/-was found from the residential premises of the assessee, out of which jewellery worth Rs. 10,14,418/- belong or to the accused and in respect of which no documentary evidence was produced by the assessee.

Report of valuation of jewellery shows the weight of gold attributable to the possession of the assessee was about 295.1 g and there is also a diamond of 16.5 carats in that jewellery. Assessing Officer proceeded to add the worth of this jewellery, namely, Rs. 10,14,418/- to the income of the assessee. Apart from this learned Assessing Officer also added a sum of Rs. 50,000/- on account of the cash possessed but unexplained of its sources. The Assessing Officer, therefore, determined the income of the assessee at Rs. 15,75, 818/- for the assessment year 2013-14 as against the returned income of Rs. 3, 91, 400/-and Rs.1.20 Lacs towards agricultural income.

The assessee submitted that out of the total gold of 590 g, Assessing Officer only attributed 295.1 g with a diamond therein to the possession of the assessee, while giving credit of 500 g to the assessee’s wife and hundred grams to the assessee, the assessee’s possession could be presumed to have been explained up to 600 g and therefore in terms of CBDT instruction No. 1916 no addition could be sustained.

The coram of Judicial Member, K.Narasimha Chary and Accountant Member N.K.Billaiya held that pursuant to the CBDT instructions, the wife of the assessee is entitled to keep 500 g of jewellery the source of which is a demoted have been explained and, therefore, no addition could be made are sustained.

To Read the full text of the Order CLICK HERE

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Suresh Bansal vs DCIT , 2021 TAXSCAN (ITAT) 119 , Advocates - Dr Rakesh Gupta,Mr. Somil Agrawal , Sh. HK Choudhary