It is quite reasonable and logical for a married daughter to keep her jewellery with her mother. ITAT deleted addition u/s 69 for jewellery found in locker
In a recent judgment ITAT has deleted the addition of jewellery found in locker holding that it is quite reasonable and logical for a married daughter to keep her jewellery with her mother.
ABCAUS Case Law Citation:
ABCAUS 3869 (2024) (02) ITAT
In the instant case, the assessee had challenged the order passed by the CIT(A) in confirming the addition made u/s 69 r.w.s 115BBE of the Income Tax Act, 1961 (the Act).
A search and seizure operation u/s 132 of the Act was conducted by the Investigation Wing in a Group of cases. Two lockers were also covered u/s 132 of the Act. On locker was in the name of the appellant assessee and her daughter and the second locker was in the name of appellant assessee and her sister-in-law. In both the lockers jewellery was found.
While framing the assessment, the Assessing Officer accepted the possession of jewelry as per the CBDT Circular No. 1916 dated 11.05.1994 in respect of the appellant and her husband at 600 gms and made addition of the balance jewellery.
The assessee agitated the matter before the CIT(A) and the CIT(A) further gave relief drawing support from the same CBDT Circular in respect of daughter of the assessee, her husband and two children. Relief of 1400 gms was granted by the CIT(A) and addition of 85.704 gms was sustained.
Before the Tribunal the assessee contended that one locker was in the joint name with her daughter who has categorically accepted that the contents in the said Locker belonged entirely to her and her only.
The Tribunal observed that the undisputed fact was that said Locker was jointly held by the assessee and her daughter. It was also not in dispute that the daughter was a non–resident and lives in the United States of America.
The Tribunal opined that it is quite reasonable and logical for a married daughter to keep her jewelry with her mother, more so when she is living abroad. The letter written by the daughter also makes it abundantly clear that the items in Locker belonged to the daughter of the assessee.
The Tribunal noted that no enquiry whatsoever had been done thereafter, neither by the Assessing Officer nor by the CIT(A). Therefore, accepting the Principle of Probability, ownership of jewellery by the daughter cannot be ruled out.
Accordingly, the ITAT directed the Assessing Officer to delete the addition sustained by the CIT(A).
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