Gifts received in shape of cash “Shaguns” on various occasions like Marriages, Birthdays, Anniversaries kept in Locker shall not be treated as Unexplained Money u/s 69A of Income Tax Act: ITAT
The Income Tax Appellate Tribunal (ITAT), Delhi bench held that gifts received in the form of cash shaguns on various occasions, such as marriages, birthdays, and anniversaries, kept in a locker, should not be treated as unexplained money under Section 69 of the Income Tax Act, 1961. The assessee, Jasmine Anand, had a locker that was discovered during a survey carried out at "U&I...
The Income Tax Appellate Tribunal (ITAT), Delhi bench held that gifts received in the form of cash shaguns on various occasions, such as marriages, birthdays, and anniversaries, kept in a locker, should not be treated as unexplained money under Section 69 of the Income Tax Act, 1961.
The assessee, Jasmine Anand, had a locker that was discovered during a survey carried out at "U&I Vaults Pvt. Ltd." During the search, cash of Rs. 8,99,500 was found and seized from locker No. L-953.
In the absence of any justification or documentary evidence regarding the source of the cash found in locker No. L-953, it was treated as unexplained money and added to the total income of the assessee under Section 69A of the Income-tax Act, 1961.
Aggrieved by the order, the assessee filed an appeal before the CIT(A), who confirmed the addition. Thus, the assessee filed a second appeal before the tribunal.
During the proceedings, Salil Kapoor, Counsel for the assessee, argued that the cash was partly withdrawn from various banks and partly received as gifts from relatives on different occasions and as pin money.
The assessee further argued that, as part of the upper strata of society, it is common for the family to receive gifts in the form of cash "shaguns" on various occasions, including marriages, birthdays, anniversaries, and other significant events. Therefore, the pin money or Kitty received from the spouse is a common practice in every family. Hence, the amount found in the locker belonged to the assessee and her wife.
Waseem Arshad, Counsel for Revenue, submitted that there were no cash withdrawals, and it is difficult to believe that the assessee would keep the amounts received as gifts on festivals and occasions in her locker.
After reviewing the facts and records, the two-member bench, consisting of Dr. B. R. R. Kumar (Accountant Member) and C. M. Garg (Judicial Member), deleted the amount found in the locker during the survey proceedings and held that gifts received in the form of cash shaguns on various occasions like marriages, birthdays, and anniversaries should not be treated as unexplained money under Section 69 of the Income Tax Act.
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