Case Law Details
Komal Nagpal Vs DCIT (ITAT Delhi)
ITAT Delhi held that locker being in joint names and first name was indicative of real ownership and hence the assessment of the contents of the locker should be rightly done in the hands of the first owner of the locker.
Facts- The core issue in this case revolves around the taxability of Rs. 11,97,500 of cash found in the locker No. 109 with ICICI Bank, New Delhi. During the course of search proceedings, a warrant has been issued to search the premises of the locker No 109 standing in the name of Komal Nagpal and Nirmal Bhandari on 15.06.2016. During the course of search cash amounting to Rs. 11,97,500 has been found in the locker. During the course of locker operation statement of Komal Nagpal, the Assessee has been recorded u/s 132(4) of the Income Tax Act, 1961.
The Assessee replied that the cash belongs to Nirmal Bhandari. The same was her from lifelong saving inherited from her Late husband R K Bhandari. As she is 87 years old and is bed ridden and unable to operate normal bank account, therefore, she has kept the money in the locker for her personal use.
AO made an addition of Rs. 11,97,500 on account of unexplained cash u/s 69A of the Act on substantive basis in the hands of the Assessee and mentioned that protective addition shall be made in the hands of the legal heir of Nirmal Bhandari.
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