New Delhi, Sept. 27 -- A large jewellery holding discovered during an Income Tax search does not automatically become the unexplained wealth of the person being searched. A recent Kolkata Income Tax Appellate Tribunal (ITAT) ruling shows why ownership records, old valuation reports and evidence about who controlled a family locker can matter when the tax department questions inherited or ancestral jewellery.

In DCIT, Central Circle 1(1), Kolkata vs Miraj Digvijay Shah, the Revenue challenged the deletion of a tax addition of Rs.1.56 crore relating to 3,233.11 grams of jewellery. The ITAT dismissed the Revenue's appeal on 11 September 2026 and upheld the finding that the jewellery belonged to the taxpayer's deceased family members and not...