Case Law Details
Ankit Sharma Vs DCIT (ITAT Delhi)
Addition u/s 69A towards excess jewellery found unsustainable as assessee belonged to wealthy family
Introduction: In the case of Ankit Sharma vs. DCIT, the Income Tax Appellate Tribunal (ITAT) Delhi ruled that the addition made under Section 69A of the Income Tax Act for excess jewelry found during a search operation was unsustainable. The decision was based on the fact that the assessee belonged to a wealthy family, and the jewelry in question was received on occasions from relatives, making it reasonable.
Detailed Analysis: The case involved a search and seizure operation conducted under Section 132 of the Income Tax Act, 1961, at the residential premises of the assessee, Ankit Sharma. During the search proceedings, gold jewelry weighing 3877.5 grams with a value of Rs. 1,46,15,635 was found. The assessee could not explain the source of this jewelry during the search. After allowing for the eligible limit exemption, the remaining jewelry weighing 1627.5 grams, with a total value of Rs. 61,34,610 as of the date of the search, was treated as unexplained jewelry.
The Commissioner of Income Tax (Appeals) [CIT(A)] upheld the addition. Dissatisfied with this decision, the present appeal was filed.
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