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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
Before: S/SHRI B.R.BASKARAN & AMARJIT SINGH
आदेश / O R D E R PER AMARJIT SINGH, JM:
The revenue has filed the appeal against the order of learned Commissioner of Income Tax (Appeals)-27, Mumbai [hereinafter referred to as the “learned CIT(A)”] dated 31.12.2013 relevant to the A.Y. 2010-11.
The assessee has filed return of income on 15.10.2010 declaring total income at Rs.28,82,242/-. The same was processed u/s. 143(1) of the Act. The case was selected for scrutiny through CASS. Notice u/s. 143(2) dated 23.09.2011 was issued and served upon the assessee on 27.09.2011. Assessee has showed interest amount received to the tune of Rs.41,87,139/- as per form 26AS. The assessee offered an amount to the tune of Rs.29,82,242/- for tax.
Assessment Year: 2010-11 The assessee took the plea that after death of her husband in 2005 they received Rs.90,00,000/- as his share in goodwill of the firm of Shri Ajay K. Chokshi to Smt. Daisy Chokshi as his wife, Shri Jahan Chokshi and Shri Yash Chokshi as his sons. At the time of filing return the minor sons of Shri Ajay K. Chokshi became entitled to the amount which has been reflected in form 26AS was not taxable in income of the assessee. She received this amount on behalf of her sons in fiduciary capacity but the Assessing Officer was not convinced by the explanation rendered by the assessee and the amount to the tune of Rs.11,05,400/- distributed to her sons was treated as undisclosed income. The assessee filed the appeal before learned CIT(A) who allowed and deleted the said additions. Accordingly, by the said order the revenue is in the appeal before Tribunal.
We have heard the arguments advanced by the learned representative of the parties and have gone through the case file carefully. It has been argued on behalf of the revenue that the learned CIT(A) has distributed the interest income of the assessee with her sons without verification of age and without verifing the facts that the sons of the Shri Ajay K. Chokshi had received any specific amount after his death. Therefore, it is necessary to verify the age of the sons of the Shri Ajay K. Chokshi in order to allow the claim of the assessee while completing the assessment of the relevant year. It is not disputed that the assessee received the interest amount to the tune of Rs.41,87,139/- as per form 26AS. She only offered the interest income to the tune of Rs.29,82,242/- for tax. The assessee explained that she has paid the interest amount to the tune of Rs.11,05,400/- to Shri K.J. Chokshi, father-in-law of assessee (Rs.1,05,400/-), Shri Yash Chokshi (Rs.5,00,000/-) and Shri Jahan Chokshi (Rs.5,00,000/-) both major sons of the assessee. They received the amount to the tune of Rs.90,00,000/- on account of legacy of Shri Ajay K. Chokshi which came into the share of her as well as her two sons to the extent of 1/3rd.
Assessment Year: 2010-11 4. The assessee claim that her sons have become major and hence interest pertaining to their share is assessable in the respective hand of sons. The question about the age of sons has not been examined by Assessing Officer. Accordingly, we find merit in the contention of the learned D.R. that these facts require verification. Accordingly, we set aside the order of learned CIT(A) and restore the same to the file of Assessing Officer with the direction to examine the age of sons and their share in capital inherited. The share of income pertaining to major sons and related TDS should be excluded from the income of the assessee.
In result the appeal of the revenue is hereby allowed for statistical purposes.