Woman declares Rs 67.4L ancestral jewellery in ITR; gets notice, she wins in ITAT
The Income Tax Appellate Tribunal in Mumbai ruled in favor of a taxpayer regarding the disclosure of ancestral jewellery, rejecting the tax department's assumption that the items were sold. However, the tribunal upheld a disallowance of a brokerage payment due to duplicate claims.
Why it matters
This case clarifies the evidentiary standards required by tax authorities when questioning asset disclosures and highlights the importance of accurate documentation in tax filings.
The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has given partial relief to a Mumbai taxpayer who was asked to explain jewellery worth Rs 67.39 lakh disclosed in her income tax return. The tribunal deleted the entire addition made under Section 69A of the Income Tax Act after finding that the tax department had relied largely on an inference that the jewellery must have been sold because the taxpayer had stopped filing wealth-tax returns.At the same time, however, the tribunal upheld a separate Rs 12 lakh disallowance relating to brokerage paid to an HUF. It found that the same individual who was said to have provided the brokerage service had already received an identical Rs 12 lakh payment in his individual capacity for the same property transaction.The order was passed on September 1, 2026, in the case of Anjani Ashok Parikh v.
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