Streedhan saved by Indian Ladies can’t be treated as Unexplained Investment: ITAT [Read Order]

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The Income Tax Appellate Tribunal (ITAT), Indore bench has held that the streedhan saved by Indian women cannot be treated as an unexplained investment for the purpose of addition under section 69 of the Income Tax Act, 1961.

The assessee was aggrieved by the order wherein it was held that the entire jewelry possessed by the assessee in excess of 800 gms. represent her unexplained investment of the impugned assessment year, hence the addition sustained for the value of jewellery in excess of 800 gms. It was also held that the cash found with the assessee Rs. 64815 is unexplained cash representing her unexplained investment.

The assessee pleaded that the assessee belongs to a rich family and such acquisition of gold jewellery are quite reasonable in such families.

However, the Tribunal upheld the orders of the lower authorities as the contention was not supported by any facts, evidence or any other details which could prove the source of the unexplained gold jewellery.

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With regard to the addition for unexplained cash amount of Rs.64,815/-, the Tribunal observed that this cash amount was found in the bank locker which was treated as unexplained by both the lower authorities.

“We are of the view that looking to the Indian customs and accumulation of Streedhan of the assessee for past many years which is normally saved by the Indian ladies, as well as looking to the smallness of the amount and the fact that the assessee is regularly filing income tax return, we find no justification in the addition of Rs.64,815/- confirmed by both the lower authorities. We accordingly delete the addition of Rs.64,815/- for the alleged unexplained investment and allow Ground No.2 raised by the assessee,” the Tribunal said.

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