2016 (2) TMI 121

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....at the Ld. C.I.T.(A) erred in confirming addition u/s 69A Rs. 4,44,295/- representing realization of assets inherited from mother pursuant to her 'WILL". 2. That the Ld. C.I.T.(A) erred in sustaining disallowances Car Exp. Rs. 10,993/-, Depreciation on car Rs. 6,328/- + Telephone Expenses Rs. 7,523/- although the expenses related wholly and exclusively to business activities. Without prejudice the disallowances are excessive." 3. The assessee is the proprietor of M/s. Lohia Ispat Udyog. The return of income for the assessment year was filed on 12.10.2007 declaring a total income of Rs. 1,39,760/-. The case was taken up for scrutiny assessment under section 143(3) and notices under section 143(2) were issued. During the scrutiny asse....

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....isite conditions which are said to be followed while executing the same are not complied. AO was further of the view that the WILL has not been certified by any Advocate and not been attested by an independent witness and found the signature of the assessee as a witness whereby, the AO disbelieved the said WILL and the amounts transferred to business account were added to the income of assessee. 3.3 The assessee claimed expenditure of motor car to an extent of Rs. 1,09,933/- but the AO disallowed the same to the extent of Rs. 21,987/- being 20% against Rs. 1,09,933/-. The assessee claimed depreciation on motor car for Rs. 63,280/-. The AO disallowed the same to the extent of Rs. 12,656/- being 20% of the claim and the AO disallowed the tel....

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.... the assessee expressed her intention to grant all her current assets to a tune of Rs. 4,28,795/- to the assessee. Supporting the same, the ld. Counsel for the assessee also pointed to the balance-sheet of his mother at page no.16 of the paper book where all her investments in shares totaling to Rs. 4,28,795/- and the same were transferred to the assessee's business concern from his personal account and accordingly pleaded to allow ground no.1 in favour of the assessee. The ld. DR vehemently contended that the AO is right in observing that the contents of the WILL are nothing but a concocted story, which, by no means, can be acceptable and relied on the orders of the ld. CIT(A) and the AO and prayed to confirm the addition made by the AO an....

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....ged the said WILL before the Court of law. In fact, no contrary evidence has been brought to our notice. Therefore, it can be safely concluded that the said WILL is a valid WILL and the same regulated the succession as declared by the testator, i.e. the mother of the assessee. In respect of page no.16, where the Profit & Loss account belonging to the mother of the assessee is produced, wherein it shows that she has invested in shares, particularly, in MKJ Development Ltd., Starlight Credit (I) Ltd. and Kherapati Vanijya Ltd. which altogether come to Rs. 4,28,795/-. Therefore, in our view, the amount to an extent of Rs. 4,28,795/- is validly proved to have been invested by the assessee in his business concern from his personal account which ....