Geeta Subhash Dalal (L/h. of Late Subhash B. Dalal) Vs DCIT (ITAT Ahmedabad)
In the case of Geeta Subhash Dalal Vs DCIT before ITAT Ahmedabad, a search operation revealed gold jewellery in a locker jointly owned by the assessee’s wife, Smt. Geeta Dalal, and her daughter, Ms. Kanan Dalal, residing in the UK. During the search, Smt. Geeta Dalal claimed the jewellery belonged to her daughter, and an affidavit from Ms. Kanan Dalal confirmed it was received as gifts from family during key life events. However, the Assessing Officer (AO) added ₹6,16,620 as unexplained income under Section 69A of the Income Tax Act, citing frequent locker operations by the assessee’s wife and lack of supporting purchase documentation.
The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the AO’s decision, emphasizing that no purchase bills or other documentary evidence substantiated the source of the jewellery. The CIT(A) noted that while an affidavit and confirmation letter were presented, they did not adequately explain the acquisition of the jewellery, leading to the conclusion that it remained unexplained.
Upon appeal, ITAT Ahmedabad considered the facts, particularly the joint ownership of the locker and the practical necessity for Smt. Geeta Dalal to operate it given her daughter’s residence abroad. The tribunal found the affidavit and confirmation letter credible and noted the absence of evidence to counter the claims made by the assessee and her daughter. ITAT emphasized that ownership cannot solely be presumed based on frequent locker operations, especially when the locker was jointly held, and the daughter was settled overseas.
