KALPANA D. PANDYA,MUMBAI vs. ITO 23(2)4, MUMBAI

आदेश / O R D E R

Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by assessee for Assessment Year [AY] 2008-09 assails the order of the Ld. Commissioner of Income Tax ITA.No.7693/Mum/2012 Kalpana D. Pandya Assessment Year-2008-09 (Appeals)-11 [CIT(A)], Mumbai, Appeal No.CIT(A)-11/Cir.23/10-11/11- 12/442-K dated 31/10/2012. The assessment for impugned AY was framed by Ld. Income Tax Officer-23(2)(4) u/s 143(3) of the Income Tax Act, 1961 on 29/12/2010. The solitary issue involved in the appeal is addition of Rs.2 Lacs u/s 68. During hearing, the Ld. Counsel for Assessee [AR] has not pressed additional grounds of appeal

2. Lacs were stated to be received by the assessee from her mother Smt. Kapilaben as per will dated 18/06/2008. However, Ld. AO found discrepancies in the dates mentioned in the will and further noted that the mother of the assessee died on 24/08/2008 i.e. after the end of the relevant financial year and therefore, the assessee could not have received the legacies before the ITA.No.7693/Mum/2012 Kalpana D. Pandya Assessment Year-2008-09 death of her mother. Finally, treating the said deposit of Rs.2 Lacs as cash credit, the same was added to the income of the assessee.

3. Aggrieved, the assessee contested the same without any success before Ld. CIT(A) and where the assessee submitted copy of will dated 18/06/2008 of the father of the assessee i.e. Shri Amrutlal Upadhyay and drew attention to the fact that the assessee received Rs.9 Lacs from her late father and not from her mother as wrongly noted by Ld. AO. The Copy of death certificate of Shri Amrutlal Upadhyay was also filed which reflected date of death as 21/08/2008. Against these additional evidences, a remand report was called from Ld. AO where Ld. AO noted that money was deposited in the bank account well before the execution of will. The assessee drew attention to the fact that the money was received well before the date of death of the father. The witness to the will was also examined where he concurred with the existence of the will and receipt of cash of Rs.9 Lacs by the assessee. The Ld.CIT(A), after considering the factual matrix and the remand report, came to a conclusion that the assessee could not prove creditworthiness of the donor and therefore, the addition was confirmed. Aggrieved, the assessee is in further appeal before us.

ITA.No.7693/Mum/2012 Kalpana D. Pandya Assessment Year-2008-09 5. We have heard the rival contentions and perused relevant material on record. We have perused the translated copy of Will of assessee’s father Shri Amrutlal Upadhyay dated 18/06/2008 where he has stated to have given his life time savings of Rs.9 Lacs to his daughter Kalpana Devendra Pandya. From the language of the will, it appears that the said savings had already been handed over by the father of the assessee to the assessee. The assessee, during course of assessment proceedings had produced copy of 7/12 extract and land related documents which prima facie, reveals that the assessee’ father was engaged in agricultural activities. The assessee had already submitted few Income Tax returns of her father to prove his creditworthiness. After consideration of totality of facts, giving benefit of doubt to the assessee, we find that balance of convenience tilts in assessee’s favor and hold that impugned additions are not warranted for in the circumstances. Hence, by deleting the same, we allow assessee’s appeal.