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TMI Blog2008 (11) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... is justified in dislodging the finding of the Assessing Officer and that of the Commissioner of Income-tax (Appeals) that the additions made by the Assessing Officer that late L. P. Khanna, father of C. K. Khanna, the assessee, the income that was bequeathed under the will actually belongs to C. K. Khanna and thereby the late L. P. Khanna was the 'benamidar'?" 2. At the very outset, certain factual details are necessary to be stated. A search was conducted in the residential premises of the assessee, C. K. Khanna by Lokayukt on June 21, 1992, and on the same day another search was conducted by the authorities of the Income-tax Department. Certain assets in the form of cash, golden ornaments, fixed deposits receipts and keys of bank lockers were found and seized. It was found that certain savings bank accounts, fixed deposits as well as bank lockers were being operated in the name of Suchandra and Neeta. On opening of the bank lockers, some more cash, jewellery and fixed deposit receipts were found which were also seized. Some bank accounts were also found in the names of the family members of the assessee. The assessee endeavoured to justify the various deposits in the names of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Khanna was dealing with property business and was definitely having some source of income from his property business as well as advance taken against his existing properties. (ii) A double storeyed house at Katni was gifted to the assessee's father, the late L. P. Khanna by his father the late Trilokinath Khanna in the year 1946. (iii) The daughters of the father of the assessee had already been educated and married by the year 1970 and, therefore, he could have certain savings. (iv) As far as the opinion of handwriting experts, Shri C. T. Servate and M. M. Nema is concerned, we agree with the observations of the Commissioner of Income-tax (Appeals) for the assessment year 1993-94 at pages 22 and 23 of his order where he has observed that Shri C. T. Servate himself has issued a contradictory report. He has further observed that in his report dated February 6, 1994, he had confirmed that the signature as "Kumar" on the locker access register in respect of locker No. 3 and some pay-in-slips in the names of Suchandra and Neeta were written by Shri C. K. Khanna, though the standard handwriting with which the signature "Kumar" was compared also included signature of Shri L. Mishra i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ell-to-do family and details have been given, regard being had to the details and facts in entirety details of each and every item have been explained by the wife, Smt. Sunita Khanna. There was no material to come to hold that all the items were purchased only in the year of search of the assessee and nothing before the search. The finding in this regard by the Commissioner of Income-tax (Appeals) cannot be found fault with. The finding recorded by the Commissioner of Income-tax (Appeals) with regard to jewellery was based on seemly material brought on record and, therefore, the additions made on account of gold jewellery and silver coins/utensils found in the residence of the assessee at the time of search was unjustified and the said finding was absolutely sound in the facts and circumstances of the case. (xviii) The confirmation of addition by the Commissioner of Income-tax (Appeals) as regards the loan from the late Radha Khanna should have been accepted as there is a mention of deposit in the letter of Shri Vinay Khanna, son of the late Radha Khanna, which has been accepted by the Assessing Officer. (xix) As the assessee was carrying on business, cheques were received. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question as to the genuineness of the will of the deceased. Their Lordships narrated the facts and held as under (page 319): "Under section 2(f) of the Succession Act, 'probate' means the copy of the will certified under the seal of a court of competent jurisdiction with a grant of administration to the estate of the testator. So in the eye of law, the grant of letters of administration with a copy of the will annexed and the grant of probate stand on the same footing. The matter relating to grant of probate or letters of administration, in our opinion, is concluded by the decision of the Supreme Court in the case of Surinder Kumar v. Gian Chand, AIR 1957 SC 875. There, the facts are more or less identical and a claim was made out against a third party. In the High Court the will was produced but as it was not probated the will was not taken note of. Before the Supreme Court, an application was made for the admission of additional evidence indicating that there had been a grant of probate. There was an adjudication as to the admission of additional evidence and the Supreme Court held and observed, inter alia, as follows (p. 876) 'An objection to the admission of additional eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ineness of the will does not establish that the income- tax authorities were in any way entitled to go behind the grant of probate as to the question of the genuineness of the will. In that view of the matter, we would answer questions Nos. 1 and 2 in the negative and in favour of the assessee. Before we conclude this part of the answers we must, however, observe that we are inclined to accept the position that the facts of this case, as presented by the assessee, inspire little confidence and credence. But so long as the finality of the probate stands, as a matter of law, such an incongruity has to be accepted. Whether, by making an appropriate amendment in the Succession Act, after the grant of the probate in appropriate cases, an application might be made by the Revenue authority, if required, to the court in such a situation, is a matter in which the Legislature alone can intervene." 6. In the case at hand, we really do not have to dwell upon and delve into whether the assets could have been bequeathed by the late L. P. Khanna. The Tribunal, as has been indicated hereinabove has scrutinised in detail and come to hold that the assessee had the resources to bequeath. While notin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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