Amount claimed to be received as nominee of deceased friend without supportive documents is taxable

Shri Satyendra Nath Kukreja Vs ITO (ITAT Delhi)

AR for the assessee challenging the impugned order passed by ld. CIT (A) contended that since the assessee has received the amount in question as a nominee of Shri Tek Chand Bhardwaj after his death being a childhood friend, the same is not liable to be taxed;

However, on the other hand, to repel the arguments addressed by the ld. AR for the assessee, the ld. DR for the Revenue contended that nomination letter relied upon by the assessee is a colourable device used by the assessee to evade the payment of tax; that there is a collusion between assessee and the council to transfer the huge amount; that no evidence whatsoever has been brought on record by the assessee if he has any relation with Shri Tek Chand Bhardwaj or he was the beneficiary of the amount in question by way of any “Will”.

Assessee has also not produced any correspondence by way of text messages or letters between him and Shri Tek Chand Bhardwaj to prove his childhood friendship rather based his entire case on alleged nomination letter. Ld. CIT (A) has rightly observed that Milton Keynes Council has recorded in the letter issued to the assessee that they being next kin of Shri Tek Chand Bhardwaj have been nominated to receive his movable assets and to prove the fact that the assessee’s next kin has not brought on record any evidence if he has close relative by way of blood or marriage of Shri Tek Chand Bhardwaj. Entire exercise as to transfer of the amount in question by Milton Keynes Council to the assessee is based upon bald document which has not been supported with any evidence either by the Milton Keynes Council or by the assessee to prove his close relations with Shri Tek Chand Bhardwaj. So, in the given circumstances, we are of the considered view that AO as well as ld. CIT (A) have rightly treated the amount in question as income of the assessee without consideration. Hence, question framed is determined against the assessee. So, finding no illegality or perversity in the impugned order, present appeal being ITA No.2898/Del/2013 filed by the assessee is dismissed.

FULL TEXT OF THE ITAT JUDGEMENT

Please become a Premium member. If you are already a Premium member, login here to access the full content.