Brief Fact of the case
In the present case, AO come to know about cash deposit of Rs.13.01 Lac by the assessee through AIR Information. On being called upon to explain the source of such cash deposit, assessee submitted that he has inherited a sum of Rs.13 lac from his mother who has died on 14-08-2006 and produced copy of her income tax return, copy of will and death certificate in support of his claim. However, the A.O. was not satisfied with the explanations and evidences submitted by the assessee.
A.O. also expressed the applicability of wealth tax as the value of cash and jewellery as claimed by the assessee exceeded Rs.15 Lacs. Since no Wealth-tax return was filed and there was nothing to show the availability of cash to the extent of Rs.13.01 lac, the AO made addition for this sum as ‘Income from undisclosed sources.’ On being aggrieved, the assessee filed the appeal with CIT(A) who deleted the addition made by the AO based on submissions made by the assessee. Revenue filed the appeal against such deletion before the Tribunal.
Contention of Assessee
It was claimed that Shri A.C. Gupta, executor of the will of his mother, opened the locker of Almirah on 12.02.2007 kept at their residence in the present of three witnesses and cash of Rs.15.06 Lacs was found.
Contention of Revenue
From the will, AO observed that she possessed Moveable assets including saving bank account, FDRs, NSCs, shares of limited company, cash as “Istridhan”, Gold and diamond jewellery. As per her will, Cash (which was not quantified) was to be given to assessee and Gold and diamond jewellery to the wife of assessee. It was also noticed as under:-
