Lakshmanan Indirani Vs ACIT (ITAT Chennai)
The assessee was subjected to search action u/s 132 on 08-9-2015. During search operations, the jewellery belonging to the assessee and her family members was found. The jewellery weighed 3574.590 Grams which was valued at Rs.85.78 Lacs. In statement u/s 132(4), the assessee submitted that the jewellery belonged to assessee, her daughter Smt. Padmavathi and two grand-daughters.
During assessment proceedings, the assessee also submitted that the jewellery was acquired by inheritance from her parents, in-laws and some of the jewellery was purchased by her over a period of time. However, the assessee did not file any wealth tax returns and the assessee could not produce purchase bills or any other evidence. Accordingly, the jewellery of Rs.92.64 Lacs (after adding 8% for making charges) was added to assessee’s income u/s 69A.
Upon perusal of family tree as placed on record, the assessee has three daughters and two grand-daughters. The assessee’s husband and one of the daughters are no more. In statement u/s 132(4), the assessee submitted that jewellery belonged to her, one of her daughters and two of grand-daughters. Considering CBDT Circular No. 1916, Ld. CIT(A) has allowed partial relief to the assessee. Further jewellery to the extent of 1081 grams was reflected in the accounts for which the benefit has already been granted to the assessee. The assessee could produce certain bills which have also been factored in by Ld. CIT(A) while granting partial relief to the assessee. We find that concession of 400 grams has been allowed against assessee’s daughter as against 500 grams prescribed in the circular. Further, no concession has been granted for jewellery acquired by the assessee out of customs/ traditions.
Therefore, we grant a further concession of 600 grams (500 grams for assessee + 100 grams for daughter). The concession of 250 grams for each of grand-daughters and 100 grams for husband is quite reasonable which would not require any interference on our part.
ITAT allows
