The Income Tax Appellate Tribunal (ITAT), Delhi bench, while deleting the addition, observed that the jewelry found during survey proceedings were gifts from the mother-in-law as stridhan.
The assessee, Jasmine Anand, had a locker found during a survey action carried out at “U&I Vaults Pvt. Ltd.” During the search, jewelry worth Rs. 8,29,19,985/- was found and seized from the locker. The Assessing Officer made an addition of Rs. 25,78,237/- on account of the difference in the jewelry.
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 taxable income of the assessee is more than Rs. 30 lakhs each year, and the assessee could have had jewelry of 2070 grams. Furthermore, the jewelry was received from the assessee’s mother-in-law as stridhan. Hence, it should not be considered for making an addition.
Waseem Arshad, Counsel for Revenue, supported the decision of the lower authorities.
The tribunal observed that as per CBDT’s Instruction No. 1916 dated 11.05.1994 and the press release dated 01.12.2016, it postulates that, by going through the archetypal Indian family standard, a person who is an Income Tax payer of a considerable amount could have had the prescribed amount of jewelry in the circular.
Furthermore, the bench observed that collecting jewelry of 906.900 grams by a woman in a married life of 25 years in the form of stridhan or on other occasions is not abnormal.
After reviewing the facts and records, the two-member bench of Dr. B. R. R. Kumar (Accountant member) and C. M. Garg (Judicial Member) deleted the addition made towards the jewelry kept in a locker found during the survey proceedings.
Therefore, the bench dismissed the appeal of the revenue.
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