Gold Jewellery acquired by Tradition/Customs: ITAT allows Income Tax Concession [Read Order]
![Gold Jewellery acquired by Tradition/Customs: ITAT allows Income Tax Concession [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/12/Gold-Gold-Jewellery-Tradition-Customs-ITAT-Income-Tax-Concession-Income-Tax-Tax-Concession-Tax-Concession-taxscan.jpg "Gold Jewellery acquired by Tradition/Customs: ITAT allows Income Tax Concession [Read Order]")
The Chennai Bench of the Income Tax Appellate Tribunal ( ITAT ) has recently allowed an additional income tax concession on the Gold acquired by the assessee, Lakshmanan Indirani by way of customary practices and tradition. The assessee was subjected to search action under Section 132 of the Income Tax Act. During the search, the jewellery belonging to the assessee and her family members...
The Chennai Bench of the Income Tax Appellate Tribunal ( ITAT ) has recently allowed an additional income tax concession on the Gold acquired by the assessee, Lakshmanan Indirani by way of customary practices and tradition.
The assessee was subjected to search action under Section 132 of the Income Tax Act. During the search, the jewellery belonging to the assessee and her family members was found. The jewellery weighed 3574.590 Grams which was valued at Rs.85.78 Lacs. In statement under Section 132(4) of the Income Tax Act, the assessee submitted that the jewellery belonged to assessee, her daughter Smt. Padmavathi and two grand-daughters.
The Assessment framed by the Assessing Officer (AO) was challenged before the Commissioner of Income Tax (Appeals) [CIT(A)] which was ruled against the assessee. Aggrieved assessee approached the Appellate Authority with the present appeal.
M P Senthil Kumar, on behalf of the assessee relied on CBDT Circular No.1916 dated 11-05-1994 to support the submissions.
The Department representative CIT Marutha Pandiyan on the other hand, submitted that adequate relief, as applicable, has already been granted by the lower authorities.
The Tribunal Bench of Judicial Member V Durga Rao and Accountant Member Manoj Kumar Aggarwal observed that “concession of 400 grams has been allowed against the assessee's daughter as against 500 grams prescribed in the circular. Further, no concession has been granted for jewellery acquired by the assessee out of customs/ traditions.”
The Appellate Authority thus observed that the concession on 250 grams already granted needed no interference but granted an additional concession of 600 grams. Consequently, the AO was directed to recompute the addition.
To Read the full text of the Order CLICK HERE
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Smt. Lakshmanan Indirani vs ACIT , 2022 TAXSCAN (ITAT) 1832 , Shri M.P. Senthil Kumar , Shri Marutha Pandiyan