No Proper Enquiry by AO on genuineness of Will in question: ITAT orders Re-Adjudication [Read Order]

The Income Tax Appellate Tribunal (ITAT), Allahabad ordered a fresh enquiry as there was no proper enquiry by the Assessing Officer (AO) on the genuineness of the Will in question.

The assessee, Shri Gaus Mohammad is an individual and did not file any return of income under section 139 of the Act. The Assessing Officer issued a notice under section 148 on 26.9.2014 on the basis of the AIR information regarding a cash deposit of Rs. 19,01,000/- in the saving bank account of the assessee with Punjab National Bank. Prior to issuing the notice u/s 148, the A.O. conducted an enquiry by issuing a letter dated 3.9.2014 requiring the assessee to furnish PAN, file of I.T. return etc., but there was no response on behalf of the assessee.

The Assessing Officer collected the bank statement bank by issuing notice under section 136(6). Since there was no response from the assessee, the Assessing Officer issued a show cause notice dated 3.11.2015 under section 144 of the Act and consequently the assessment was framed under sections 144 and 147 whereby the Assessing Officer made an addition of Rs. 16,51,000/- after giving the credit of Rs. 2,50,000/- as sale consideration of agricultural land sold by the assessee detected during the enquiry conducted through the Income Tax Inspector.

The assessee challenged the assessment order before the CIT(A) and contended that the income of the assessee for the year under consideration was below the taxable limit therefore, no return of income was filed by the assessee.

Further, the assessee submitted additional evidence to explain the source of deposit in the shape of a Will executed by his father who died on 16.01.2011 leaving cash of Rs. 17,15,900/-. The assessee claimed that as per the Will dated 22.04.2004, his father left the said cash which was received only after his death and was deposited in the bank account. The CIT(A) called for a remand report and after considering the remand report has confirmed the addition made by the Assessing Officer.

Aggrieved the assessee is in appeal before the Tribunal.

Vijay Pal Rao, Judicial Member held that “It is clear that the Assessing Officer, as well as the CIT(A), doubted the genuineness of the Will in question without conducting any enquiry or examination of the genuineness.

To ascertain the genuineness of the Will, the Assessing Officer was required to verify the genuineness of the signatures of the father either from the undisputed record bearing his signature or otherwise by examination of the attesting witnesses or any other relevant material. Hence, in the facts and circumstances of the case, the matter is set aside to the record of the Assessing Officer to re-adjudicate the same after conducting a proper enquiry regarding the genuineness of the Will.”

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