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TMI Blog1989 (12) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... e. On the other hand, the assessee's contention is that he had merely borrowed the car for going to a trip to Hardwar and the car had been so borrowed by him only a day or two before the search. At the hearing before us the learned counsel for the stressed that the car had not been purchased by the assessee and no investment was made in this connection and hence the addition could not have been made. On the other hand, the learned Departmental Representative contended that the payment of Rs. 2,70,000 had actually been made by the assessee to Smt. Madhu Sethi for the acquisition of the car and although the car was not yet registered in the name of the assessee for legal reasons, the assessee having made the investment, the sources of which the assessee failed to explain, the addition was properly made. 4. Now admitted by the car was found parked at the residence of the assessee and the key and the relevant papers in connection with the car were all in his possesssion. Therefore, the assessee admits that at the time of the search the car was in his possession and control. The Officer, who led the search party, examined the assessee at 10.00 A. M. on 5-3-1986, the date of the search ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents made by the assessee :-- " Q. 14. Is she wife of your friend Mr. Sethi ? A. I have already clarified. I don't think it needs further clarification. Q. 15. Do you know a car broker who is having a shop at Malcha Marg Shopping Centre near Carmal Convent School, New Delhi ? A. I do not recollect Q. 16. Have you purchased the car from Mrs. Madhu Sethi through the broker as stated in question No. 15 ? A. No. Q. 17. Since when you having this car with you ? A. I don't recollect Q. 18. Are you having this car with you since 1-1-1985 ? A. I have earlier told you and again and again you are putting the same question. Q. 19. Are you using the car for you ? A. No. Q. 20. Are you any expense for this car in any concern's books of account ? A. I don't know. Q. 2 1. Who knows it ? A. I don't know. Q. 22. On whose instructions books of a/cs of M/s Grover Leasing Ltd. are maintained ? A. Mr. K.K. Arora the Manager, Finance. Q. 23. Are you aware whether any expense on Car No. DIC 579 are debited in books of Grover Leasing Co. ? A. I am not aware. Q. 24. In books of accounts GLL ledger folio 39 dated 4-1-1985 a sum of Rs. 200 has been detected to vehicl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he is not coming out with truth and is patently trying to conceal the truth. It may be that during the course of the search the assessee was in a state of shock. But that does not mean that he could not have told the officers as to the time since when this car was with him and whether it was with him for more than a year. If it was a fact that the car had been borrowed by him for a temporary use of a few days, he could have certainly told this fact even in the worst stages of shock. He did not even remember when he met Mr. Sethi last and whether he had met him any time in the preceding six months or had a telephonic talk with him. If he had borrowed the car from Mr. Sethi he could not have done this without meeting and talking to him and then he fails to state that the car was borrowed for a short time for going to Hardwar, etc. Even when he was examined in the evening of 5th March, 1986 he could not say since when the car was with him. He could not deny if the car was with him from 1-1-1985. That means that even in the evening he was not ready to say how the car came into his possession. The reason is apparent. He had not been able to contact the Sethis so as to devise a common st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sethi is not very material. It was a car that was imported by Mrs. Sethi under a import licence issued to her and admittedly she, under the law, could not transfer it to anyone for a period of 5 years. Therefore, if she sells the car to anyone, the car will have to continue to be registered in her name in order that some defence may be set up in case any proceedings are taken for violation of the terms of import permit. Since by the transfer of the car the terms of the import permit have been violated the Seths have to support the assessee in his contention that the car was only lent for a short-term and had actually not been sold. 12. During the course of the search the raiding party had also come into possession of documents showing that on 4-1-1985 expenditure of Rs. 200 on the purchase of petrol for the car in question (DIC-579) is recorded in the books of M/s Grover Leasing Ltd. -- a company of which the assessee is a Managing Director. This also shows that the car in question had been in possession and use of the assessee even on 4-1-1985 and the story that it was borrowed for short-term, a day or two before 5-3-1986, has no substance. This circumstance, on the other hand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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