Absence of the VDIS certificate cannot be fatal to the assessee’s claim if credible alternate evidence is produced
Delhi ITAT in a recent case was faced with an issue as to whether an assessee is entitled to the benefit of gold jewellery declared under the Voluntary Disclosure of Income Scheme (VDIS), 1997 when the original VDIS certificate and original valuation report are not available, but other secondary evidence is furnished?
Let us have a Short Overview of the case:
The case detail is as under:
Delhi ITAT – Mandeep Khurana vs. ACIT, Central Circle-20, New Delhi, ITA No. 599/DEL/2023 | Assessment Year: 2019–20 Order Date: 27.01.2025 | Bench: ITAT Delhi ‘E
FACTUAL BACKGROUND:
A search and seizure operation was conducted under section 132 of the Income Tax Act, 1961 in June 2018.
Jewellery valued at ₹1,96,44,084/- was found in lockers held by the assessee and her family.
The AO allowed exemptions of 600 grams under CBDT Instruction No.1916 and made an addition of ₹1,32,05,935/- under Section 69 read with Section 115BBE as unexplained investment in jewellery.
ASSESSEE’S CLAIM:
Part of the jewellery, valued at ₹8,66,943/-, was declared under the VDIS 1997.
Assessee submitted:
A copy of the acknowledgment receipt of VDIS.
Tax payment Challans for ₹2,70,487/- under the scheme.
An affidavit stating the disclosure.
REVENUE’S OBJECTION:
The original VDIS certificate and specific jewellery-wise valuation report were not produced.
The affidavit submitted was not notarized or on a stamp paper.
The claim lacked itemized matching of jewellery declared in 1997 with what was found in 2018.
ITAT FINDINGS & RULING:
On VDIS Declaration:
Held: The assessee had produced sufficient secondary evidence to substantiate her claim of disclosure under VDIS:
Tax paid under VDIS was proven.
Acknowledgment receipt under VDIS was on record.
An affidavit was filed explaining the circumstances, especially the death of the husband who managed tax affairs.
The Tribunal directed the AO to calculate the quantity of gold declared under VDIS by using prevailing gold price in 1997 (approx. ₹473/gm) and allow that quantity (1830 grams) to be reduced from total additions.
On Absence of VDIS Certificate:
Held: The absence of the VDIS certificate cannot be fatal to the assessee’s claim if credible alternate evidence is produced
The copy of the order is as under:
