Presumption of ownership in search cases: fixed deposits found in control of the deceased were taxed as unexplained income.

Fixed deposits standing in the name of the assessee's daughter were treated as belonging to the deceased assessee because they were found with his documents and under his control, attracting the statutory presumption of ownership under section 132(4A). The explanation that the funds came from gifts, business income, or earlier savings was rejected as unsatisfactory, and the assessee failed to rebut the presumption or prove a credible source. The reference to omission of assets in an order under section 132(5) was also rejected because that order is only a summary measure and does not determine ownership. The deposits were therefore assessed as unexplained income under section 69.

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Issues: Whether the fixed deposits standing in the name of the assessee's daughter belonged to the deceased assessee and were taxable in his hands as unexplained income under section 69.

Analysis: The explanation that the deposits came from marriage gifts, birthday gifts, business income, or earlier savings was found unsatisfactory. The claim based on the non-inclusion of some assets in the order under section 132(5) was rejected because that order is only a summary measure for retention or release of assets and does not conclude ownership. The deposits were found with the deceased's documents and in his control, attracting the statutory presumption under section 132(4A). As the assessee failed to rebut that presumption or prove a satisfactory source, the deposits were treated as belonging to the deceased and assessable as income from undisclosed sources.

Conclusion: The additions were rightly sustained in the hands of the deceased assessee and the objection that section 69 was inapplicable was rejected.

Final Conclusion: The point of difference was answered in favour of the Revenue, holding that the fixed deposits were assessable as unexplained income of the deceased assessee.

Ratio Decidendi: Where assets found in a search are in the possession or control of an assessee and the assessee fails to rebut the statutory presumption of ownership or satisfactorily explain their source, they may be assessed as unexplained income in the assessee's hands.

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