CYNTHIA RAMONA CHELLAPPA, CHENNAI V. ITO, NCW - 15 (1), CHENNAI

ITA 2219/CHNY/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0597 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 30-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R ANITA
• Assessee Lawyers: T BANUSEKAR
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI , . , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN , ACCOUNTANT MEMBER ./ ITA NO. 2219 /CHNY/ 201 9 / ASSESSMENT YEAR: 201 4 - 1 5 SMT. CYNTHIA RAMONA CHELLAPPA NO.31A, JAGANNATHAN STREET, LAKSHMI PERUMAL NAGAR, KOTTIVAKKAM, CHENNAI 600 0 41. [PAN: A PAPC 1752Q ] VS. THE INCOME TAX OFFICER NON - CORPORATE WARD 15(1) CHENNAI 600 034 ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. T. BANUSEKAR, C.A. /RESPONDENT BY : M S . R. ANITA , JCIT / DATE OF HEARING : 0 3 . 1 2 .2019 / DATE OF PRONOUNCEMENT : 0 3 .12 .2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE A GAINST THE ORDER OF THE LEARNED COMMIS SIONER OF INCOME TAX (APPEALS) - 15 , CHENNAI I N ITA NO. 384/2016 - 17/CIT(A) - 15 DATED 30.05.2019 FOR THE ASSESSMENT YEAR 201 4 - 1 5 . 2. SHRI T. BANUSEKAR , CHARTERED ACCOUNTANT REPRESENTED ON BEHALF OF THE ASSESSEE AND MS. R. ANITA , JCIT REPRE SENTED ON BEHALF OF THE R EVENUE . ITA NO. 2219 / CHNY / 201 9 : - 2 - : 3 . IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRESENTATIVE THAT THE ASSESSEE IS A SWISS INDIVIDUAL MARRIED TO AN INDIAN AND RESIDING IN INDIA. THE ASSESSEE HAD RECEIVED A BEQUEATHAL THROUGH THE WILL OF HER GOD - MOTHER EVA MARIA SCHNELDER - BOOG AN AMOUNT OF 50,000 SWISS FRANCS THROUGH A WILL EXECUTED ON 26.08.2013 . THE LEARNED AUTHORIZED REPRESENTATIVE PLACED BEFORE US THE COPY O F THE PROCEEDINGS OF THE SINGLE - JUDGE COURT, DISTRICT COURT OF MEILEN , W HEREIN THE T ESTAMENT HAS BEEN CLEARLY MENTIONED IN RESPECT OF THE LAST WILL OF EVA MARIA SCHNELDER - BOOG DATED 15 TH SEPTEMBER, 2009 EXECUTED ON 26.08.2013 THAT MS. CYNTHIA CHELLAPPA, THE GOD - DAUGHTER RESIDING IN INDIA IS GIVEN THE LEGACY OF SWISS FRANCS OF 50,000 . THE LEARNED AUTHORIZED REPRESENTATIVE ALSO PLACED BEFORE US THE COPY OF THE DECREE BY CANTONAL TAX OFFICE ZURICH IN RESPECT OF THE INHERITANCE TAX PAID BY THE ASSESSEE MS. CYNTHIA CHELLAPPA IN RESPECT OF THE LEGACY RECEIVED OF 50,000 SWISS FRANCS. THE INHERITANCE TAX U/S.23F UNDER THE INHERITANCE T AX IS AT 7,200 SWISS FRANCS. IT WAS A SUBMISSION THAT THE ASSESSEE HAD RECEIVED THE AMOUNT BY WAY OF WILL AND THE ASSESSING OFFICER IN THE COURSE OF THE ASSESSMENT HELD THAT AS PER THE PROVISIONS OF SECTION 5 6(2)(VII) OF THE INCOME TAX ACT, 1961 READ WITH THE PROVISO THEREUNDER WAS TO BE INTERPRETED THAT THE BENEFICIARY HAS TO BE RELATED WITHIN THE MEANING OF EXPLANATION (E) TO BE A RELATIVE AND NOT OTHERWISE. AS THE GOD - MOTHER WHO HAD BEQUEATHED THE AMOUNT TO THE ASSESSEE, WAS NOT A RELATIVE, T HE ASSESSING OFFICER TREATED THE SAID AMOUNT OF 50,000 SWISS ITA NO. 2219 / CHNY / 201 9 : - 3 - : FRANCS RECEIVED BY THE ASSESSEE AS INCOME FROM OTHER SOURCES. IT WAS A SUBMISSION THAT SECTION 56(2)(VII) AND IN THE FOURTH PROVISO THERE UNDER, CLAUSE (C) CLEARLY HELD THAT THE AMOUNT RECEIVED THROUGH A WILL IS EXEMPTED. IT WAS A SUBMISSION THAT THE LEARNED CIT(A) DID NOT CONSIDER THE EXPLANATION OF THE ASSESSEE AND HAD DISMISSED THE ASSESSEES CLAIM. 4. IN REPLY , THE LEARNED DEPARTMENTAL REPRESENTATIVE SU PPORTED THE ORDER OF THE LEARNED ASSESSING OFFICER AND THE LEARNED CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PERUSED THE MATERIALS AVAILABLE ON RECORD. 6. A PERUSAL OF THE PROVISION S OF SECTION 56(2)(VII) SHOWS THAT ANY AMOUNT RECEIVED BY AN INDIVIDUAL WITHOUT CONSIDERATION AND THE AGGREGATE VALUE EXCEEDS 50,000, THE WHOLE OF THE AGGREGATE VALUE IS LIABLE TO BE TREATED AS INCOME UNDER THE HEAD INCOME FROM OTHER SOURCES . THE FOURTH PROVISO THEREUNDER PROVIDES FOR THE EXEMPTIONS. C LAUSE ( A) TALKS OF ANY AMOUNT RECEIVED FROM A RELATIVE , CLAUSE (C) TALKS OF ANY AMOUNT UNDER THE WILL OR BY WAY OF INHERITANCE. FOR THE PURPOSE OF CLAUSE (A) OF THE FOURTH PROVISO, RELATIVE HAS BEEN DEFINED IN EXPLANATION (E) TO THE PROVISO. A WILL CAN BE WRI TTEN BY ANYBODY. IN A WILL, ANYBODY CAN BE GIVEN A BEQUEATHAL. IT NEED NOT BE A RELATIVE ALONE. THE FACT TH AT THE FOURTH PROVISO REFERS TO RELATIVE IN SUB - CLAUSE (A) , AND REFERS TO A WILL OR INHERITANCE IN CLAUSE (C) CLEARLY SHOWS THAT ITA NO. 2219 / CHNY / 201 9 : - 4 - : THE WILL NEED NOT BE A WILL OF A RELATIVE. FURTHER, A WILL IS NOT GIVEN ANY RESTRICTIVE MEANING IN THE EXPLANATION UNDER THE SAID PROVISO EITHER. THIS BEING SO, WE ARE OF THE VIEW THAT THE AMOUNT RECEIVED BY THE ASSESSEE AS A LEGACY THROUGH THE WILL OF MRS. EVA MARIA SCHNELDER - BOOG OF AN AMOUNT OF 50,000 SWISS FRANCS, UNDER NO CIRCUMSTANCE S, CAN BE BROUGHT TO TAX UNDER THE HEAD INCOME FROM OTHER SOURCES AS THE SAME IS EXEMPTED BY CLAUSE (C) OF THE FOURTH PROVISO TO SECTION 56(2)(VII) OF THE INCOME TAX ACT, 1961. 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD DECEMBER , 2019 IN CHENNAI. SD/ - ( . ) ( S. JAYARAMAN ) /ACCOUNTANT MEMBER / CHENNAI, / DATED: 3 RD DECEMBER , 2 019 . IA, SR. PS SD/ - ( ) (GEORGE MAT HAN) /JUDICIAL MEMBER / COPY TO: 1. / APPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF