Case Number: ITA 3041/DEL/2022
Appellant: Sharad Kumar Garg, Delhi
Respondent: ACIT, Central Circle-20, New Delhi
Assessment Year: 2019-20
Case Filed On: 2022-12-29
Order Type: Final Tribunal Order
Date of Order: 2023-03-07
Pronounced On: 2023-03-07
In the case of Sharad Kumar Garg vs. ACIT, Central Circle-20, New Delhi, the appellant, Sharad Kumar Garg, challenged the addition of unexplained jewellery for the assessment year 2019-20. The case was heard by the Income Tax Appellate Tribunal (ITAT) Delhi Bench ‘SMC’ on 22nd February 2023, with the final order pronounced on 7th March 2023.
The appeal arose from the order passed by the Commissioner of Income-tax (Appeals)-27, New Delhi, dated 13th December 2022. The appellant was represented by S/Shri M.P. Rastogi, Advocate & Deepak Malik, Advocate, while the respondent was represented by Shri Om Parkash, Sr. DR. The primary grievance of the appellant was the addition of Rs. 18,39,876/- made on account of unexplained jewellery.
The appellant raised several grounds of appeal:
The ITAT bench, comprising Shri Kul Bharat (Judicial Member), decided on each issue as follows:
The appellant argued that the lower authorities failed to consider the will of the grandmother, which stated that the jewellery belonged to the appellant. The authorities, however, pointed out that there was no specification regarding the jewellery’s weight and description in the will. Despite this, the bench concluded that it could not be inferred that no jewellery was bequeathed. The AO should have given the benefit of the CBDT Instruction regarding the grandmother’s jewellery. Thus, the AO was directed to grant a set-off of 500 grams of jewellery as per the CBDT Instruction relating to the grandmother, in addition to the relief given by the CIT(A).
The grounds raised in this appeal were partly allowed, and the AO was instructed to re-compute the addition in light of the aforementioned direction.
The ITAT’s decision emphasizes the importance of considering all relevant evidence and providing a fair opportunity for taxpayers to present their case. It ensures that the appellant is given a fair opportunity to correct any errors in their filings and to substantiate their claims.
Order Pronounced: In the open court on 7th March 2023.
Bench: Shri Kul Bharat, Judicial Member
Copy forwarded to:
Date of Hearing: 22nd February 2023
Date of Order: 7th March 2023
The appellant, Sharad Kumar Garg, filed an application on 29th December 2022 against the order dated 13th December 2022 by the CIT(A), challenging the addition of unexplained jewellery for the assessment year 2019-20.
The tribunal considered the appellant’s arguments and decided to remit the issues back to the AO for verification and fresh adjudication, ensuring that the appellant is given an adequate opportunity to present their case.
The tribunal’s decision underscores the importance of due process and fairness in tax assessments, allowing taxpayers to correct errors and provide necessary documentation to substantiate their claims.
Overall, the ITAT’s order serves as a reminder of the importance of accurate and fair assessment procedures in tax matters, ensuring that all parties are given a fair chance to present their case and that decisions are made based on thorough verification and consideration of all relevant facts.
Sharad Kumar Garg vs. ACIT, Central Circle-20, Unexplained Jewellery for AY 2019-20
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