2002 (12) TMI 554 - AT - Income Tax

Summary

Issues:
1. Addition of Rs. 25,000 on account of CDS amount of the deceased.
2. Addition of Rs. 25 lacs being the value of jewelry, heirlooms, etc., disclaimed by the deceased.

Issue 1:
The first issue in this case pertains to the addition of Rs. 25,000 on account of the CDS amount of the deceased. The Revenue contended that the amount should be included in the deceased's estate, relying on legal commentary to support their argument. However, it was established that the CDS amount of Rs. 25,000 belonged to the estate of the deceased's late husband, and the deceased was merely a nominee in the bank account. The estate of the deceased's late husband had not been administered during her lifetime, leading to the conclusion that no amount could be included in her estate. The Tribunal upheld the decision of the CED(A) on this issue, dismissing the appeal by the Revenue.

Issue 2:
The second issue revolves around the addition of Rs. 25 lacs, representing the value of various items like jewelry and heirlooms, which were disclaimed by the deceased during her lifetime. The Revenue argued that the act of disclaimer, if any, should still be added to the deceased's estate. They also raised concerns about the valuation of assets and the lack of details provided by the accountable person. On the other hand, the counsel for the assessee contended that the deceased had relinquished her right to choose any assets, as evidenced by the contents of her will. The Tribunal analyzed the deceased's will, which clearly indicated her disclaimer of choosing any valuables from her late husband's estate. Since the assets remained unadministered and the right to choose was never exercised by the deceased, the Tribunal held that the disclaimer did not constitute a gift and therefore should not be added to the deceased's estate. Consequently, the Tribunal upheld the decision of the CED(A) on this issue, dismissing the appeal by the Revenue.

In conclusion, the Appellate Tribunal ITAT MUMBAI, in the case at hand, addressed the issues of adding amounts related to the deceased's late husband's estate and the disclaimer of valuables by the deceased during her lifetime. The Tribunal carefully analyzed the legal arguments presented by both parties and upheld the decision of the CED(A) on both issues, ultimately dismissing the appeal by the Revenue.