SUMAN MANDAR RANGNEKAR, MUMBAI v. ITO WD 21(2)(4), MUMBAI

ITA 6494/MUM/2011 | 2008-2009
Pronouncement Date: 18-11-2011 | Result: Allowed

Appeal Details

RSA Number 649419914 RSA 2011
Assessee PAN ADDPR1686M
Bench Mumbai
Appeal Number ITA 6494/MUM/2011
Duration Of Justice 1 month(s) 22 day(s)
Appellant SUMAN MANDAR RANGNEKAR, MUMBAI
Respondent ITO WD 21(2)(4), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 18-11-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted E
Tribunal Order Date 18-11-2011
Date Of Final Hearing 09-11-2011
Next Hearing Date 09-11-2011
Assessment Year 2008-2009
Appeal Filed On 26-09-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH E MUMBAI BEFORE SHRI B.R. MITTAL (JUDICIAL MEMBER) AND SHRI T.R. SOOD (ACCOUNTANT MEMBER) ITA NO. 6494/MUM/2011 ASSESSMENT YEAR-2008-09 SMT. SUMAN MANDAR RANGNEKAR 201 ARIHANT APARTMENT PANDOLSKAR MARG VILE PARLE (E) MUMBAI-400 057 PAN-ADDPR 1686M VS. THE ITO WARD 21(2)(4) 503. C-10. BANDRA KURLA COMPLEX BANDRA (E) MUMBAI-400 051 (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI HARIDAS BHAT RESPONDENT BY: SHRI G.P. TRIVEDI DATE OF HEARING :9.11.2011 DATE OF PRONOUNCEMENT: O R D E R PER B.R. MITTAL JM : THE ASSESSEE HAS FILED THIS APPEAL FOR ASSESSMENT Y EAR 2008-09 AGAINST ORDER OF LD. CIT(A) DT.14 TH JULY 2011. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IS AS TO WHETHER LD. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF AO ON ADDITION OF RS. 1 10 00 000/- AS GIFT AND CONSIDERING IT AS TAXABLE U/S. 56(2)(VI) OF THE ACT. 3. THE RELEVANT FACTS ARE THAT ASSESSING OFFICER HA S STATED THAT AS PER AIR ASSESSEE INVESTED AN AMOUNT OF RS. 1 10 00 000/- IN ICICI PRUDENTIAL MUTUAL FUND ON 18.5.2007. ON DETAILS OF SOURCE OF INVESTM ENT CALLED FOR ASSESSEE STATED THAT INVESTMENT WAS ACTUALLY MADE BY LATE DI LEEP PUROHIT FROM HIS BANK ITA NO. 6494/M/11 2 ACCOUNT AND ASSESSEE WAS NOMINEE OF THE SAME. THAT DILEEP PUROHIT EXPIRED ON 21 ST APRIL 2008 AND SAID INVESTMENT ALONGWITH OTHER INV ESTMENT WAS TRANSFERRED TO ASSESSEE AS A TRUSTEE AS PER HIS LAS T WILL AND TESTAMENT. THE ASSESSING OFFICER DID NOT FIND MENTION OF THIS MUTU AL FUND IN SAID LAST TESTAMENT OF DECEASED DILEEP PUROHIT. THE AO HAS S TATED THAT A LETTER WRITTEN TO ICICI PRUDENTIAL MUTUAL FUND TO SUBMIT DETAILS OF TRANSACTION AND SAID MUTUAL FUND VIDE ITS LETTER DT. 28.12.2010 STATED THAT DECEASED DILEEP PUROHIT PURCHASED UNITS OF ICICI PRUDENTIAL MUTUAL FUND IN F AVOUR OF ASSESSEE. SINCE SHRI DILEEP IS NOT RELATED TO ASSESSEE IN ANY MANNE R AO CONSIDERED THE SAID AMOUNT AS INCOME OF ASSESSEE FROM OTHER SOURCES AS PER PROVISIONS OF SEC. 56(2)(VI) OF THE ACT. BEING AGGRIEVED ASSESSEE FI LED APPEAL BEFORE FIRST APPELLATE AUTHORITY. 4. ON BEHALF OF ASSESSEE IT WAS CONTENDED THAT INV ESTMENT WAS MADE BY DECEASED DILEEP AND ASSESSEE WAS NOMINEE AND NOT FI RST OR SECOND HOLDER. IT IS ONLY ON THE DEATH OF SHRI DILEEP; ASSESSEE HAD B ECOME THE OWNER. THE LD. CIT(A) HAS STATED THAT STATEMENT SUBMITTED BY ASSES SEE BEFORE HIM HAVE THE NAME OF ASSESSEE AS SOLE HOLDER; AND THEREFORE CONT ENTION OF ASSESSEE THAT INVESTMENT WAS MADE BY LATE DILEEP PUROHIT AND ASSE SSEE WAS ONLY A NOMINEE IS NOT SUBSTANTIATED. THE LD. CIT(A) HAS FU RTHER STATED THAT EVEN IN THE TESTAMENT MADE BY DECEASED DILEEP PUROHIT THE RE IS NO MENTION OF SAID UNIT OF ICICI PRUDENTIAL MUTUAL FUND TO BE GIVEN TO ASSESSEE UPON HIS DEATH. THEREFORE LD. CIT(A) HAS CONFIRMED ACTION OF AO STA TING THAT SAID AMOUNT IS GIFT RECEIVED BY ASSESSEE WITHOUT CONSIDERATION. H ENCE IT IS TO BE DEEMED AS ITA NO. 6494/M/11 3 INCOME U/S. 56(2)(VI) OF THE ACT. THUS ASSESSEE I S IN FURTHER APPEAL BEFORE TRIBUNAL. 5. DURING THE COURSE OF HEARING LD. AR SUBMITTED T HAT SAID UNITS WERE REDEEMED ON 22.5.2008. HE FURTHER SUBMITTED THAT A S PER LAST WILL AND TESTAMENT COPY PLACED AT PAGES 1 TO 6 OF PAPER BOOK THERE IS A CLAUSE (13) WHICH STATES THAT LATE DILEEP PUROHIT MADE INVESTME NTS IN SHARES MUTUAL FUNDS AS WELL AND STATED THAT IF ANY NOMINATION IS MADE NOMINEE TO PAY OVER THE PROCEEDS AND TRANSFER SAID INVESTMENTS TO EXECU TORS. HE SUBMITTED THAT PROBATE CERTIFICATE WAS ALSO RECEIVED AND REFERRED TO PAGES 8 TO 47 OF PAPER BOOK AND SUBMITTED THAT ITEM NO. 53 IS IN RESPECT OF SAID ICICI PRUDENTIAL MUTUAL FUND. TO SUBSTANTIATE HIS SUBMISSION HE SU BMITTED THAT FOLIO NO. MENTIONED THEREIN IS SAME AS STATED IN LETTER DT. 4 TH AUGUST 2008 PLACED AT PAGE-2 OF PAPER BOOK FILED EARLIER. THE LD. AR FI LED COPY OF LETTER DT. 9 TH SEPTEMBER 2011 FROM ICICI PRUDENTIAL ASSET MANAGEMEN T AND STATED THAT SAID UNITS WERE REGISTERED IN THE NAME OF DILEEP PU ROHIT WITH NOMINEE AS SUMAN RANGNEKAR I.E. ASSESSEE AND THE SAID UNITS WE RE TRANSMITTED ON 4 TH AUGUST 2008 TO ASSESSEE. HE SUBMITTED THAT SAID LETTER WAS NOT PLACED BEFORE AUTHORITIES BELOW AS IT WAS RECEIVED SUBSEQU ENT TO PASSING OF ASSESSMENT ORDER AS WELL AS ORDER BY FIRST APPELLAT E AUTHORITY AND IT STATES THAT ASSESSEE WAS ONLY A NOMINEE AND NOT THE REGIST ERED OWNER OF UNITS. LD. AR FURTHER FILED A COPY OF BANK STATEMENT FOR THE P ERIOD 1.4.2005 TO 25.8.2011 AND SUBMITTED THAT RS. 1 11 80 730/- WAS CREDITED TO ACCOUNT OF DILEEP PUROHIT ON 29 TH MAY 2008 ON REDEMPTION OF SAID UNITS. A QUERY WA S RAISED BY BENCH HOW THE AMOUNT WAS CREDITED IN SAID BANK ACCOUNT OF ITA NO. 6494/M/11 4 DECEASED ON 29.5.2008 WHEN HE DIED ON 21.4.2008. L D. AR SUBMITTED THAT SAID ACCOUNT CONTINUED TO OPERATE. BE THAT AS IT M AY WE ARE OF THE CONSIDERED VIEW THAT MATTER REQUIRES RECONSIDERATIO N IN THE LIGHT OF LETTER RECEIVED BY ASSESSEE DT. 9 TH SEPTEMBER 2011 FROM ICICI PRUDENTIAL ASSET MANAGEMENT AS IT IS FILED FIRST TIME BEFORE US AND THE COPY OF PROBATE CERTIFICATE WHICH IS ALSO STATED TO BE RECEIVED ON 16 TH FEB. 2009 I.E. SUBSEQUENT TO PASSING OF ASSESSMENT ORDER AND IN TH E LIGHT OF SUCH OTHER DOCUMENTS AS MAY BE FILED BY ASSESSEE TO ASCERTAIN WHETHER SAID INVESTMENT WAS MADE BY DECEASED DILEEP PUROHIT IN HIS NAME AND SUBSEQUENTLY TRANSMITTED IN THE NAME OF ASSESSEE OR INVESTMENT W AS MADE BY HIM DIRECTLY IN THE NAME OF ASSESSEE. NEEDLESS TO STATE THAT AO WILL GIVE DUE OPPORTUNITY TO ASSESSEE AND WILL PASS A SPEAKING ORDER AS PER L AW. HENCE GROUND OF APPEAL TAKEN BY ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT APPEAL FILED BY ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 18 TH DAY OF NOVEMBER 2011 SD/- SD/- ( T.R. SOOD) (B.R. MITTAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI DATED 18 TH NOVEMBER 2011 RJ ITA NO. 6494/M/11 5 COPY TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT-CONCERNED 4. THE CIT(A)-CONCERNED 5. THE DR E BENCH TRUE COPY BY ORDER ASSTT. REGISTRAR I.T.A.T MUMBAI