ITAT deletes ₹1.13 crore tax addition on jewellery held by married daughters

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has deleted tax additions totaling ₹1.13 crore regarding jewellery and cash found during a National Investigation Agency (NIA) search. The tribunal ruled that married daughters may reasonably keep their gold jewellery at their parental home, a practice consistent with family customs.

The assessee, Vakil Ahmed, had provided affidavits and marriage photographs to demonstrate that the jewellery belonged to his late wife and three married daughters, having been received as wedding gifts. While the Assessing Officer had previously rejected these explanations on the grounds that married daughters typically keep such items in their own homes, the ITAT found the evidence sufficient to overturn the decision.