The income tax officer accepted 2,250 grams of jewellery out of the 3,877.5 grams found at Ankur Sharma’s family house. The officer calculated this based on the guideline limits for nine family members. The officer treated the remaining 1,627.5 grams of jewels, worth about ₹61.35 lakh, as unexplained wealth. He then added ₹20.45 lakh each to the income of three family members.
But the tribunal checked the family’s income tax returns, financial status, and cash withdrawals made over many years. The tribunal also considered the family’s explanation that they got the jewels through inheritance and family functions. The tribunal then ordered the removal of this income addition.
The tribunal passed this order on October 6, 2023. The main point of this case is that officials cannot treat the remaining jewels as unexplained wealth just because the quantity exceeds the guideline limits.