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2024 (5) TMI 85 - ITAT AHMEDABADRental income earned on immovable properties owned by his family members - Benami Owner - properties owned by relatives of the assessee - basis for treating the same as benami property of the assessee is the CBI search conducted on the assessee making out a case of assets owned by the assessee disproportionate to his source of income - assessee contended before us that this rental income had been disclosed by the owners of the property in their returns, and the same had not been disturbed or disputed till the date - HELD THAT:- As it is evident that the case of the Revenue of the impugned properties being benami of the assessee rests merely on the preliminary report of the CBI which did not see the light of day by framing concrete charges against the assessee. We have perused the statement recorded by CBI and as rightly pointed out by the Ld.Counsel the assessee denied having anything to do with the said properties, he stated the names of the owners of the properties and also revealed sources from where investment was made by them. The entire case of the Revenue rests on the CBI Charge sheet framed by the CBI which was subsequently dropped. Revenue has failed miserably to prove that the assessee was a benami owner of the impugned properties. The assessee therefore cannot be treated as owner of the properties. The decision referred of the Hon’ble Kerala High Court in K. Mahim Udma [1999 (10) TMI 45 - KERALA HIGH COURT] casting an onerous burden on the party alleging benami transaction aptly covers the issue in hand, in favour of the assessee. Therefore there is no occasion to tax rental income earned therefrom in the hands of the assessee.Further the fact that rental income from these properties was returned in the hands of respective owners has been accepted by the Revenue all along, also strengthens the case of the assessee. In view of the above we hold that the rental income cannot be treated to be that belonging to the assessee. Addition made of the same is directed to be deleted. Badla income earned by the assessee - HELD THAT:- As entire case of the Revenue rests on the CBI charge sheet which ultimately did not culminate in any charges being framed on the assessee. Therefore, not much credence can be given to allegations levelled on the assessee in the charge sheet. Besides we have noted that Sh. Pawar filed an affidavit stating on oath that all income from badla activities carried out in D.D Enterprises related to him and had nothing to do with the assessee. The Revenue has been unable to point any infirmity in the affidavit of Shri Pawar. Even income from the badla business carried out in D D Enterprises was shown to be duly returned to tax by the said entity,being proprietorship of Sh.Pawar. Thus no substance in the addition made by the Revenue of income badla. Income earned from investments held to be benami of the assessee - interest earned on Post-Office MIS - investment being in the name of father of the assessee treated to be benami of the assessee - HELD THAT:- As there is no case for treating the impugned income as that related to the assessee, since Revenue has been unable to discharge its onus of proving that these investments were benami of the assessee.In view of the same, the addition made of interest income earned from FDR and interest earned on Post Office MIS are directed to be deleted. Appeal of the assessee is allowed.
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