9911796707
TMI Blog2015 (6) TMI 892X X X X Extracts X X X X X X X X Extracts X X X X ..... eath of Smt. Saroj Gupta, there is no evidence about the source of the availability of cash to such a huge extent in her hands. In our considered opinion, the assessee just concocted a story of inheriting cash from his mother after her death. We are reminded of the judgment of the Hon’ble Supreme Court in the case of CIT vs. Durga Prasad More (1971 (8) TMI 17 - SUPREME Court). In this case, it has been held that self serving recitals cannot be accepted as true unless the assessee proves it. In this case, the assessee tendered an explanation that she got the amounts from horse races, which was not accepted by the ITO who came to hold that the winning tickets were purchased by the assessee after the event. Upholding the view taken by the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n being called upon to explain the source of this cash deposit, the assessee stated that he inherited more than ₹ 13 lac from his mother Smt. Saroj Gupta, who died on 14.8.2006. He claimed that Smt. Saroj Gupta was a regular income-tax assessee and used to file her income-tax returns. In support of this contention, he filed a copy of her return for the AY 2006- 07; a copy of Will dated 28.2.2006; and a copy of death certificate. On perusal of the Will of Smt. Saroj Gupta, the AO observed that she claimed through this Will to have possessed Moveable assets including Saving bank account in OBC, FDRs in OBC, National Saving Certificate, Shares of limited companies, Cash as Istridhan , Gold and diamond jewellery received at the time of h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to show the availability of cash to the extent of ₹ 13.01 lac, the AO made addition for this sum as Income from undisclosed sources. The ld. CIT(A) concurred with the submissions advanced on behalf of the assessee and deleted the addition. The Revenue is aggrieved against such deletion of addition. 4. We have heard the rival submissions and have perused the relevant material available on record. The entire controversy rotates around the source of cash of ₹ 13.01 lac deposited by the assessee in his bank account, which was claimd to have been received from the estate of Smt. Saroj Gupta, his mother, who passed away on 14.8.2006. From the discussion made above, it is patent that there is no direct evidence of the availabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aving bonds, on FDRs and on NSCs. It is further important to note that Smt. Saroj Gupta was having some amounts parked in saving bank accounts, FDRs and National Saving Certificates and hence regularly earning interest income therefrom. We fail to comprehend as to how such a wise person, being fully aware of and actually earning interest income by investing funds, can be expected to keep huge cash of ₹ 15.06 lac in her almirah for years together. 5. The assessee tried to prove the availability of cash with her to the tune of ₹ 13.01 lac by submitting before the ld. CIT(A) that Shri A.C.Gupta, executor of the will of his mother, opened the locker of Almirah kept at the residence in the presence of three witnesses and cash of & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xercise appears to have been shown to have been carried out for giving a colour of genuineness to the availability of cash of ₹ 15.06 lac from the almirah of the deceased. 6. There is another interesting aspect of the matter. When the AO pointed out the obligation of Smt. Saroj Gupta of filing wealth-tax return in case she had cash and jewellery etc. exceeding ₹ 15 lac, the assessee came out with a fantastic explanation that out of ₹ 15.06 lac found at the time of death, only a sum of ₹ 13.01 lac was available up to the end of the year, that is, 31.3.2006 and the remaining amount was received during the period 1.4.2006 to 14.8.2006, being the date of her death. This was just a futile attempt to thwart the obligati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is case, the assessee tendered an explanation that she got the amounts from horse races, which was not accepted by the ITO who came to hold that the winning tickets were purchased by the assessee after the event. Upholding the view taken by the AO, the Hon ble Supreme Court held that for considering whether the apparent is real, the matter should be considered by applying the test of human probabilities. Viewed from that angle, the Hon ble Summit court upheld the view canvassed by the AO that the explanation of the assessee was not genuine. In our considered opinion, the entirety of facts and circumstances prevailing in the instant case do lead to an irresistible conclusion that there was no cash available with Smt. Saroj Gupta at the time ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
