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2016 (5) TMI 270 - HC - Income TaxAdditions u/s 68 - Cash available as Stridhan with Late Smt. Saroj Gupta on her demise - Held that:- It is not disputed that Late Smt. Saroj Gupta had not filed a wealth tax return in respect of her net wealth as on 31st March, 2006 which would be mandatory if she possessed cash to the extent as claimed by the AO. The Assessee had sought to explain non-filing of the wealth tax return by asserting that the cash available with Late Smt. Saroj Gupta on 31st March, 2006 was only ₹ 13,31,800/- and the remaining amount of ₹ 1.75 lacs was received by her after 1st April, 2006 and before the date of her demise (that is, 14th August, 2006). Apart from the fact that the Assessee provided no material to substantiate the aforesaid contention, it is also relevant to note that the cash was claimed to be Late Smt. Saroj Gupta's "Cash of my Istridhan" and thus unless invested would not increase with efflux of time. The ITAT described the explanation provided by the Assessee as “fantastic”. We concur with the view that the aforesaid explanation is wholly unsustainable and was rightly rejected by the ITAT. Admittedly, Late Smt. Saroj Gupta had also not disclosed any cash-in-hand other than under her proprietorship concerns. The Assessee's contention that Late Smt Saroj Gupta was not required to disclose her cashin- hand is difficult to accept. It is relevant to note that a proprietorship concern does not have a separate legal identity other than its sole proprietor and an assessee carrying on business is required to maintain books of accounts necessary for his/her assessment. Be that as it may, the ITAT noted that there was no evidence of Late Smt. Saroj Gupta owning and possessing any cash-in-hand and the self serving documents could not be relied upon. It is relevant to note that out of ₹ 15.06 lacs stated to have been found in the almirah of Late Smt. Saroj Gupta, a sum of ₹ 5 lacs was in currency notes in the denomination of ₹ 1,000/- and ₹ 8,51,500/- was in the denomination of ₹ 500/-. Clearly, such currency could not have been acquired by Late Smt. Saroj Gupta as her Stridhan during the time of her marriage as currency in such denomination was not available at that time. We concur with the view of the ITAT that the entire explanation of bequest of Stridhan and discovery of currency is an elaborate subterfuge to attempt to explain the aggregate cash deposited by the Assessee in the subsequent financial year (that is, Financial Year 2007-08). - Decided against revenue.
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