Mudita Chaturvedi Vs ACIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT) Delhi delivered a notable judgment in the case of Mudita Chaturvedi Vs. ACIT, overturning the decision of the Commissioner of Income Tax (Appeals) [CIT(A)]. This article provides a comprehensive overview of the case and the pivotal ruling issued by the ITAT.
Case Overview
- Background: The appeal by the assessee, Mudita Chaturvedi, pertained to the assessment year 2019-20. The sole grievance of the assessee was regarding the addition of Rs. 6,35,025 under section 69 r.w.s. 115BBE of the Income Tax Act.
-
Search Operation: A search and seizure operation under section 132 of the Act was conducted by the Investigation Wing on 12th July 2018 in the Rohit Tiwari Group of cases. The locker of the assessee at New Delhi Vaults Limited was included in the operation, resulting in the discovery of jewellery weighing 719.916 grams.
- Assessee’s Explanation: The assessee claimed that the jewellery found in the locker constituted her Stri Dhan, received at the time of her marriage and on various festive occasions from her parents, in-laws, and relatives. Additionally, reliance was placed on CBDT Instruction No. 1916.
- AO’s Decision: Despite the explanation provided by the assessee, the Assessing Officer (AO) accepted only a portion of the jewellery as Stri Dhan and treated the excess weight as unexplained investment under section 69 of the Act r.w.s. 115BBE.
- CIT(A) Proceedings: The assessee appealed before the CIT(A), reiterating her claim of Stri Dhan. However, the CIT(A) modified the addition by considering the gross weight of jewellery found, albeit restricting the addition to the amount determined by the AO.
ITAT Delhi’s Verdict
Paid content
Become a Basic or Premium Member, or log in if you are already a Basic or Premium member.
