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Issues:
1. Determination of ownership of property for tax assessment. 2. Analysis of investments made in property acquisition and construction. 3. Consideration of loans and source of funds for property investment. 4. Evaluation of rental income and personal savings in property ownership. 5. Application of Benami Transactions Act to property ownership disputes. Detailed Analysis: 1. The case involved a dispute regarding the ownership of a property for tax assessment purposes. The Income Tax Officer (ITO) assessed the income from a property in the hands of the assessee, an individual, under the head 'Income from other sources'. The assessee claimed that the property belonged to his wife, not him. The ITO, based on previous assessments and investigations, concluded that the wife was a benamidar for the husband, leading to the assessment of income in the hands of the assessee. 2. The investments made in the property acquisition and construction were thoroughly examined. The ITO found that the entire investment for the property was made by the assessee, even though it was acquired in the name of his wife. Various sources of funds, including loans, rent, sale of gold, and personal savings, were detailed to explain the investment of Rs. 1,97,497 in the property construction. 3. The loans and funds used for property investment were a significant point of contention. The Departmental Representative argued that the assessee had taken loans from different parties, transferred them to his wife, and then invested them in the property construction. The representative contended that the investments were made by the assessee himself, indicating his ownership of the property. 4. The assessment also considered rental income and personal savings in determining property ownership. The rental income received and personal savings declared by the wife were scrutinized to establish the true owner of the property. The lack of independent corroborative evidence for the wife's income sources raised doubts about her ability to make investments in the property. 5. The judgment also discussed the application of the Benami Transactions Act to property ownership disputes. It was clarified that while the Act prohibits benami transactions and the right to recover property held benami, it does not prevent income tax authorities from assessing income from property in the hands of the real owner. The Supreme Court decision in a related case was cited to emphasize the distinction between property ownership disputes and tax assessments. In conclusion, the Tribunal set aside the CIT(A) order and restored that of the ITO, ruling in favor of considering the income from the property in the hands of the real owner, i.e., the assessee. The appeal was allowed based on the detailed analysis of property ownership, investments, loans, income sources, and the application of relevant legal provisions.
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