Dinesh Kumar Jain Vs DCIT/ACIT (ITAT Delhi)
The Delhi ITAT allowed the assessee’s appeal and deleted the addition of ₹2,32,000 made on account of 40 grams of gold bullion found during a search operation. The dispute arose from an assessment framed under Section 143(3) of the Income Tax Act for AY 2023-24 following a search conducted under Section 132 in the Ulfex Montage Group cases.
During the search and seizure proceedings, bullion weighing 125 grams, comprising 21 gold ginnies valued at ₹7,25,000, was found and seized from the assessee’s premises. The assessee explained that the gold ginnies had been received as customary gifts on occasions such as marriage, birth of children, and other family functions. The Assessing Officer rejected the explanation and added the value of the bullion, holding that the gold ginnies were not covered by CBDT Instruction No. 1916 dated 11.05.1994, even though the total jewellery found, including the ginnies, was below the limits prescribed in the Instruction.
In appeal, the Commissioner of Income Tax (Appeals) granted partial relief. The CIT(A) accepted 40 grams of gold as customary gifts received during family functions and also allowed credit for 45 grams of gold purchased from disclosed funds. However, the CIT(A) sustained the addition of ₹2,32,000 relating to the remaining 40 grams of gold.
