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2015 (6) TMI 892 - ITAT DELHI

2015 (6) TMI 892 - ITAT DELHI - TMI - Income from undisclosed sources - CIT(A) deleted the addition - source of cash of ₹ 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, who passed away on 14.8.2006 as per assessee - Held that:- All the circumstances in the case prove it beyond any shadow of doubt that there was no cash in hand available as ‘Istridhan’ on the death of Smt. Saroj Gupta that was .....

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vs. Durga Prasad More (1971 (8) TMI 17 - SUPREME Court). In this case, it has been held that self serving recitals cannot be accepted as true unless the assessee proves it. 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 .....

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of ₹ 13.01 lac was bequeathed from his mother. We, therefore, overturn the impugned order on this score and restore the opinion of the AO. - Decided in favour of revenue. - ITA No.4085/Del/2012 - Dated:- 18-6-2015 - Shri R.S. Syal and Shri A.T. Varkey, JJ. For the Petitioner: Shri Anil Gupta, CA For the Respondent: Shri Vikram Sahay, Sr. DR ORDER PER R.S. SYAL, AM: This appeal by the Revenue is directed against the order passed by the CIT(A) on 31.5.2012 in relation to the assessment year .....

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377; 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, FDRs in O .....

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ong with Balance sheets and Statement of affairs as on 31.3.2005, 31.3.2006 and 14.8.2006 (date of death), the assessee did not file any Statement of affairs as on 31.3.2005 and 31.3.2006. Copies of Balance sheet of her Proprietorship concerns, namely, M/s Satyam Investments and M/s Mahajan Investments and Financial Services as on 31.3.2005 were filed, which depicted cash balance of ₹ 16,706/- and ₹ 7,754/-, respectively. Statement of affairs of Smt. Saroj Gupta as on 14.8.2006 filed .....

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of cash and jewellery as claimed by the assessee exceeded ₹ 15 lac. Since no Wealth-tax return was filed and there was nothing to show the availability of cash to the extent of ₹ 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 r .....

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question arises as to whether the existence of cash to the above extent as Istridhan can be accepted as genuine in the extant facts. It can be observed from the assessment order that she was proprietor of two concerns, namely, M/s Satyam Investments and M/s Mahajan Investments and Financial Services. She filed her return for the AY 2005-06 declaring total income of ₹ 1,42,710/- with the amount of tax liability at ₹ 1,242/-, a copy of which is available on page 5 of the paper book. I .....

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ations has been shown at ₹ 1.73 lac. Balance sheet of this proprietorship concern indicates capital of Smt. Saroj Gupta at ₹ 3.56 lac. Here, it is interesting to mention that she has made withdrawals to the tune of ₹ 1.52 lac from this concern. Her computation of income 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 i .....

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of the will of his mother, opened the locker of Almirah kept at the residence in the presence of three witnesses and cash of ₹ 15.06 lac was found on such opening of almirah. It is relevant to note that Shri A.C. Gupta, claimed to be the executor of the will of Smt. Saroj Gupta, is none other than father of the assessee and husband of the deceased. Further, what has been claimed to have been opened by him is not a bank locker, but, simply an almirah in the house. Smt. Saroj Gupta died on .....

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essee and the circumstances leading to the opening the almirah at the residence after a gap of around six months from the death of death and that too in the presence of three witnesses. When there were no conflicting claims on the Will of the deceased and the beneficiaries were only the assessee and his wife, it is not understandable as to what prompted the family of the deceased to allegedly open the almirah after six months and that too in the presence of three witnesses. What was the need of .....

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77; 15 lac, the assessee came out with a fantastic explanation that out of ₹ 15.06 lac found at the time of death, only a sum of ₹ 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 her death. This was just a futile attempt to thwart the obligation of filing wealth tax return and bearing the consequences for its non-filing. 7. It is further pertinent to mention that Smt .....

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