Can income tax department treat excess gold jewellery as unexplained solely for exceeding CBDT limits?

GreyOak summary

The Income Tax Appellate Tribunal (ITAT) Delhi deleted a Rs 69.23 lakh tax addition made by the department over excess gold jewellery found during a search. The tribunal ruled that CBDT limits are seizure guidelines, not ceilings on legitimate ownership, citing the taxpayer's declared income and judicial precedents. The ruling clarifies that jewellery received as gifts does not constitute unexplained income if supported by financial background.