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TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 270
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....012, was filed by the Revenue assailing an order dated 31st May, 2012 passed by the Commissioner of Income Tax (Appeals) [hereafter 'CIT(A)'] allowing the appeal of the Assessee and deleting an addition of Rs. 13,01,000/- made by the Assessing Officer (AO) as unexplained cash credit. 2. The controversy involved in the present appeal relates to cash deposits aggregating Rs. 13,01,012/- which were made by the Assessee in his bank accounts on various dates during the Financial Year (FY) 2007-08. The Assessee explained the source of cash to be a bequest from his deceased mother which was not accepted by the AO and, accordingly, taxed as Assessee's income. 3. The Assessee is a practising Chartered Accountant and in addition to the income from ....
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....AO called upon the Assessee to file evidence of Income tax Returns, Balance sheets and Statement of affairs of Late Smt. Saroj Gupta as on 31st March, 2005, 31st March, 2006 and 14th August, 2006. The AO noted that the Assessee did not file the Statement of affairs as on 31st March, 2005 and 31st March, 2006. However, copies of the balance sheet of the proprietorship concerns of Late Smt. Saroj Gupta, namely, M/s Satyam Investments and M/s Mahajan Investments and Financial Services indicated cash in hand as on 31st March, 2005 as Rs. 16,706/- and Rs. 7,754/- respectively. The AO further noted that Late Smt. Saroj Gupta had not filed her wealth tax return which would be mandatory if her assets included specified assets and cash in excess of ....
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....ened by the executor (who was the husband of the deceased) in the presence of witnesses (which included the daughter of the deceased) and the detailed inventory which was stated to have been made. The ITAT observed that there was no contest as to the bequest of the deceased and in the circumstances, there was no occasion for the executor to take six months to open the almirah located at his residence. Taking all the facts into consideration, the ITAT was of the view that the entire exercise was a subterfuge, only to show that cash was genuinely found in the almirah of the deceased. The ITAT also found the Assessee's explanation as to why Late Smt. Saroj Gupta had not filed her wealth tax return to be not acceptable. In the circumstances, th....
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....ich would be mandatory if she possessed cash to the extent as claimed by the AO. The Assessee had sought to explain non-filing of the wealth tax return by asserting that the cash available with Late Smt. Saroj Gupta on 31st March, 2006 was only Rs. 13,31,800/- and the remaining amount of Rs. 1.75 lacs was received by her after 1st April, 2006 and before the date of her demise (that is, 14th August, 2006). Apart from the fact that the Assessee provided no material to substantiate the aforesaid contention, it is also relevant to note that the cash was claimed to be Late Smt. Saroj Gupta's "Cash of my Istridhan" and thus unless invested would not increase with efflux of time. The ITAT described the explanation provided by the Assessee as "....
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....r than its sole proprietor and an assessee carrying on business is required to maintain books of accounts necessary for his/her assessment. Be that as it may, the ITAT noted that there was no evidence of Late Smt. Saroj Gupta owning and possessing any cash-in-hand and the self serving documents could not be relied upon. 13. Fourthly, the return of income also indicated that Late Smt. Saroj Gupta had earned interest from bank on saving bank account, tax saving bonds, Fixed Deposit Receipts (FDRs) and National Saving Certificates and obviously had invested her liquid fund with banks and other interest bearing instruments. There was no possible explanation why Late Smt. Saroj Gupta would keep a sum of Rs. 15.06 lacs in her almirah. The ITAT h....