The Chennai Bench of Income Tax Appellate Tribunal (ITAT) has allowed the benefit of 600 grams of jewellery to the NRI women observing that the status and traditional practices should be considered during the addition of unexplained jewellery.
A search operation was conducted at residential premises of Shri S.A. Mohideen Sheik (assessee’s father- (assessee-Mohamed Mohideen Ayesha Nasreen) wherein gold jewellery of 4530.90 grams was found. The assessee’s father, in statement under Section 132(4), attributed jewellery of 1599.90 grams to the assessee. The same was valued at Rs.45.23 Lacs.
In support, the assessee filed a copy of the marriage certificate, bank statement, gift deed, declarations by donors, confirmation letters, affidavit etc. However, AO rejected the claim on the ground that the assessee did not file any Income Tax Returns or wealth tax returns before date of search and made addition.
The Commissioner of Income Tax Appeals (CIT(A)) granted benefit of 500 grams of jewellery as well as benefit of 130 grams of jewellery stated to be received by the assessee as Meher at the time of marriage and directed AO to reduce the addition to that extent. In other words, addition to the extent of jewellery weighing around 970 grams was confirmed.
S. Sridhar, on behalf of the assessee submitted that approx. 1201 grams of jewellery was belonging to her and about 393 grams of jewellery belonging to her two daughters was received on various auspicious occasions and kept in the bank locker of her parents and used by her upon visit to India.
Senthil Kumaran, appeared on behalf of the revenue.
The Division Bench of V. Durga Rao (Judicial Member) and Manoj Kumar Aggarwal (Accountant Member) partly allowed the appeal,
Observing that, “Considering the status of the assessee as well as the traditional practices, we grant further benefit of 600 grams of jewellery to the assessee and sustain the addition to the extent of 370 grams of jewellery. No further benefit could be granted to the assessee in the absence of acceptable satisfactory documentary evidence.”
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