The Income Tax Appellate Tribunal (ITAT) Delhi Bench deleted the addition made by the assessing officer on jewelry gifted on occasion of marriage before the search action.
A search action was conducted on the residence of the assessee, Anu j Sood and jewellery valued at Rs.1 ,24,64 ,057/- was found out of which jewellery amounting to Rs.1 ,06,42 ,243/- was seized.
Before the Assessing Officer (AO), the assessee submitted that the jewellery belonged mostly to his wife, and was received as gift by his wife during their marriage which took place in the month of October 2016.
After that the AO alleged that the assessee was unable to provide any supporting evidence/documents and made an addition and pass assessment order.
Aggrieved by the order, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) {CIT(A)}, who dismissed the appeal. Accordingly, against the order the assessee filed an appeal before the tribunal.
During the proceedings Rajeev Saxena, the counsel for the assessee submitted that the marriage of assessee had happened on 21 .10.2016 and the raid took place on 23.11.2016.
Further, the newly married bride is the youngest daughter of an established family and received jewellery at marriage and also as gifts from friends and relatives.
P. Praveen Sidharth, the Counsel for Revenue, supported the decision of lower authorities and argued that the assessee did not provide the wealth tax return or any will against his claim that the jewellery was acquired through inheritance or gift.
The tribunal after reviewing the facts and submissions of the both parties the two -member bench of B. R. R. Kumar, (Accountant Member) and Saktijit Dey, Vice President) observed that the assessee has filed before the revenue authorities, the will of Sarla Sood and also the confirmation of Rajesh Sood the Paternal uncle of gifting the jewellery on the occasion of marriage. Hence, he proved the source of jewellery gifted on marriage. Also noted that the Search action was conducted after the marriage of asessee. Therefore, no addition could be made on the jewellery gifted on marriage.
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