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TMI Blog2015 (6) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... nformation was received about the assessee having deposited cash of Rs. 13,01,000/- in Oriental Bank of Commerce (OBC), Connaught Place, New Delhi. On being called upon to explain the source of this cash deposit, the assessee stated that he inherited more than Rs. 13 lac from his mother Smt. Saroj Gupta, who died on 14.8.2006. He claimed that Smt. Saroj Gupta was a regular income-tax assessee and used to file her income-tax returns. In support of this contention, he filed a copy of her return for the AY 2006- 07; a copy of Will dated 28.2.2006; and a copy of death certificate. On perusal of the Will of Smt. Saroj Gupta, the AO observed that she claimed through this Will to have possessed Moveable assets including Saving bank account in OBC, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value of cash and jewellery as claimed by the assessee exceeded Rs. 15 lac. Since no Wealth-tax return was filed and there was nothing to show the availability of cash to the extent of Rs. 13.01 lac, the AO made addition for this sum as 'Income from undisclosed sources.' The ld. CIT(A) concurred with the submissions advanced on behalf of the assessee and deleted the addition. The Revenue is aggrieved against such deletion of addition. 4. We have heard the rival submissions and have perused the relevant material available on record. The entire controversy rotates around the source of cash of Rs. 13.01 lac deposited by the assessee in his bank account, which was claimd to have been received from the estate of Smt. Saroj Gupta, his mother, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome for the AY 2006-07 indicates earning of interest from bank on saving bank account, on tax saving bonds, on FDRs and on NSCs. It is further important to note that Smt. Saroj Gupta was having some amounts parked in saving bank accounts, FDRs and National Saving Certificates and hence regularly earning interest income therefrom. We fail to comprehend as to how such a wise person, being fully aware of and actually earning interest income by investing funds, can be expected to keep huge cash of Rs. 15.06 lac in her almirah for years together. 5. The assessee tried to prove the availability of cash with her to the tune of Rs. 13.01 lac by submitting before the ld. CIT(A) that Shri A.C.Gupta, executor of the will of his mother, opened the loc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yond our understanding. We find that this is nothing but camouflage. The entire exercise appears to have been shown to have been carried out for giving a colour of genuineness to the availability of cash of Rs. 15.06 lac from the almirah of the deceased. 6. There is another interesting aspect of the matter. When the AO pointed out the obligation of Smt. Saroj Gupta of filing wealth-tax return in case she had cash and jewellery etc. exceeding Rs. 15 lac, the assessee came out with a fantastic explanation that out of Rs. 15.06 lac found at the time of death, only a sum of Rs. 13.01 lac was available up to the end of the year, that is, 31.3.2006 and the remaining amount was received during the period 1.4.2006 to 14.8.2006, being the date of h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mati Dayal vs. CIT (1995) 214 ITR 801 (SC). In this case, the assessee tendered an explanation that she got the amounts from horse races, which was not accepted by the ITO who came to hold that the winning tickets were purchased by the assessee after the event. Upholding the view taken by the AO, the Hon'ble Supreme Court held that for considering whether the apparent is real, the matter should be considered by applying the test of human probabilities. Viewed from that angle, the Hon'ble Summit court upheld the view canvassed by the AO that the explanation of the assessee was not genuine. In our considered opinion, the entirety of facts and circumstances prevailing in the instant case do lead to an irresistible conclusion that there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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