This analysis covers the ITAT Delhi’s decision on Rekha Khaitan’s appeal against the DCIT, Circle-19, New Delhi, for the assessment year 2019-20 concerning unexplained jewelry assets and wealth tax returns.
The case stems from two separate orders dated 25.08.2022 by the National Faceless Appeal Centre (NFAC), Delhi, pertaining to the assessment year 2019-20. The central issue revolves around the disallowance of jewelry assets claimed in the taxpayer’s wealth tax returns and subsequent adjustments made by the Central Processing Centre (CPC).
The dispute primarily focuses on the disallowance of claimed deductions for jewelry that was not deposited within the statutory due dates under the laws governing such assets.
The tribunal analyzed the statutory requirements and previous judgments concerning similar cases. The Supreme Court’s decision in Checkmate Services Pvt. Ltd. vs CIT-I was particularly noted for setting a precedent that impacts the current case.
The ITAT dismissed the appeals, upholding the NFAC’s decision to disallow the deductions based on the taxpayer’s failure to comply with the statutory timelines for declaring jewelry assets in wealth tax returns.
Rekha Khaitan vs. DCIT, Circle-19, New Delhi – ITA 2520/DEL/2022
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