Case Law Details
There is no dispute that during the course of assessment proceedings the assessee while explaining the source of jewellery interalia stated that Mrs. Darshana K. Jethani has received jewellery of gold and diamond by way of ‘Will’ of Smt.Lachmi Ukarmal Mangtani, her grandmother. In support, he also placed on record the copy of the said will for verification and also stated that the said will was executed in the presence of Dr.Murli M. Ratnani (PAN- address).
It was further stated that the said doctor is a income tax payee and practicing in Thane City itself and ready to visit your office for a statement to prove the genuineness of the said will. It was also stated that the true copy of the will was not found at the time of search as it was lying with the executors of the will. It was, therefore, submitted that the jewellery found at the time of search be treated as explained. However, the AO merely on the ground that neither the will is registered nor it is notarised, the same was not found at the time of search and nothing was stated in the statement recorded u/s 132(4) rejected the plea of the assessee that it is after thought. Since the assessee has filed the copy of the will with an explanation that the same was lying with the executors of the will and the assessee was ready to produce one of the executors i.e. Dr.Murli M. Ratnani, therefore, we are of the view that the AO was not justified in rejecting the valid document of ‘Will’ filed by the assessee without recording any statement of Dr.Murli M.Ratnani. In this view of the matter and keeping in view that the AO has accepted part of the jewellery as explained and no contrary material has been placed on record by the Revenue to show that the part of the explanation given by the assessee was found to be false and untrue, we are of the view that the addition made by the AO and sustained by the Ld.CIT(A) is not sustainable and accordingly the same is deleted.
INCOME TAX APPELLATE TRIBUNAL, MUMBAI
ITA No.4630/Mum/2008 – (Assessment Year: 2005-06)
Mr .Hemraj K.Jethani
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Will — an important document.