Case Law Details
ACIT Vs Sharada Narayanan (ITAT Bangalore)
ITAT Bangalore held that non-registration of will doesn’t lead to any inference against its genuineness. Thus, jewellery inherited from mother in law based on non-registered will be capital assets and sell thereof results into long term capital gain.
Facts- The assessee has claimed capital gains of Rs.6,29,20,349/- arising out of sale of jewellery of Rs.7,09,53,800/-. This capital gains is stated to be reinvested in purchase of a residential house for an amount of Rs.6,00,00,000/-excluding stamp duty and registration charges. The total rein-vestment as per computation of total income is Rs.6,45,00,000/-.
On going through the sale bills, it is seen that during the year the assessee has shown total jewellery of Rs.7,12,63,800/- though the assessee has claimed sale of jewellery at Rs.7,09,53,800/-.
Notably, the long term capital gains claimed by the assessee and deduction of Section 54F of the Act amounting to Rs.6,29,29.348/- is rejected by AO and the amount received by her from M/s. Navarathan Jewellers through RTGS/Cheques amounting to Rs. 7,12,63,800/- is treated as her Income under the head Income from other sources and brought to tax U/s.56 of the Act. However, CIT(A) quashed the assessment order.
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This information is valuable for anyone dealing with inherited assets and looking to ensure compliance with income tax regulations. Keep up the great work in providing such informative content!