Case Law Details
Anuj Sood Vs ACIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) in Delhi recently reached a significant decision in the case of Anuj Sood Vs ACIT. The case pertains to the addition of Rs. 73,87,343 made by the Assessing Officer (AO) as unexplained bullion/jewellery under sections 69B and 115BBE of the Income Tax Act, 1961, a decision which was upheld by the Commissioner of Income Tax (Appeals). The key argument made by Anuj Sood centered around the jewellery being gifts received during his marriage just a month prior to the tax search.
A search action carried out at Anuj Sood’s residence resulted in the discovery of jewellery valued at Rs. 1,24,64,057, of which a significant amount was seized. Sood argued that a large portion of this jewellery had been gifted during his wedding and belonged to him, his wife, and his mother. However, the AO disputed this due to the lack of supporting evidence, including a lack of wealth tax return or a will.
The CIT(A) provided some relief, treating 1100 gms of the jewellery as explained and thus reducing the addition to Rs. 73,87,343. The appellant’s arguments before ITAT hinged on the recent marriage and the presentation of significant jewellery as gifts, the significant income and tax payments of the assessee, and other financial evidence, such as the PMGKY deposits scheme.
The ITAT, taking into account the appellant’s financial history, the PMGKY declaration, the grandmother’s will, the confirmation of Sh. Rajesh Sood, and the timing of the wedding, decided in favour of the appellant. In the end, the tribunal concluded that no addition on account of jewellery was called for in this case. This decision is a significant reminder of the context and specific facts that should be considered during such tax assessments and illustrates the importance of comprehensive evidence in cases involving the receipt of gifts.
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