2016 (6) TMI 972 - HC - Income Tax

Benami account - Additions made on the basis of peak amounts - Held that - The concurrent findings recorded by the Assessing Officer CIT(A) and the Tribunal that the savings account No.16860 in the name of Shri Sube Singh was infact benami account of the assessee and the additions made on the basis of peak amounts therein for the relevant assessment years were totally justified. The contention of the assessee in the facts and circumstances as noticed hereinabove cannot be accepted as the view taken by the Assessing Officer CIT(A) and the Tribunal is based on appreciation of evidence on record. Learned counsel for the appellant has not been able to produce any material to controvert the well-reasoned findings recorded by the authorities below. Thus no substantial question of law arises - Decided against assessee

Summary

Issues:
1. Appeal under Section 260A of the Income Tax Act, 1961 against Tribunal's order.
2. Legality of Tribunal's findings regarding additions in the appellant's hands.
3. Justification of Tribunal's rejection of appellant's contentions on judgments.
4. Rejection of contention regarding bank account ownership similarity.

Issue 1:
The appellant filed an appeal against the order of the Income Tax Appellate Tribunal, challenging the additions made in the assessment years 2000-01 and 2002-03. The appellant argued about the lack of evidence for the additions during the assessment year 2002-03, questioning the legitimacy of the department's actions against the passbook holder, Sube Singh, without taking any action against him. The appellant contended that the additions made lacked bonafides of the revenue.

Issue 2:
The Assessing Officer concluded that the savings account in Sube Singh's name was actually being operated by the appellant and his sons, leading to the addition of peak amounts as income of the appellant. The CIT(A) affirmed these findings, stating that the undisclosed income was rotated through the benami account. The Tribunal upheld the orders of the Assessing Officer and CIT(A) after considering evidence like the presence of the passbook at the appellant's residence, withdrawals and deposits made by the appellant and his sons, and the account being closed immediately after the search operation.

Issue 3:
The Tribunal rejected the appellant's contentions regarding the relevance of judgments submitted, stating that the compilation of judgments was arbitrarily ignored. The Tribunal's findings emphasized the consistent operation of the bank account by the appellant and the lack of evidence regarding repayment of loans or property transactions, supporting the additions made by the Assessing Officer and CIT(A).

Issue 4:
The Tribunal affirmed that the account in Sube Singh's name was operated by the appellant, not his sons, based on evidence like the passbook found at the appellant's residence, withdrawals and deposits made by the appellant and his sons, and the introduction to the account by the appellant's wife. The Tribunal concluded that the additions made in the appellant's hands were justified, dismissing the appeal as no substantial question of law arose due to well-reasoned findings by the authorities below.