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TMI Blog1982 (3) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... use atJhinjhana Road, Shamli, in the name of his wife, Smt. Lahar Kaur, and that the said house was let out to NCC at a monthly rent of Rs. 500. The WTO recorded the statement of the assessee on this point on30-1-1976. In his statement, the assessee stated that his wife purchased a plot of land for Rs. 5,000 in the year 1963 and constructed a house on the said plot during the years 1963 to 1965 and spent a sum of Rs. 20,000. It was stated that the above investment of Rs. 20,000 was made up partly out of the savings of his wife and partly out of an advance of Rs. 10,000 as loan to his wife. The WTO observed that there was no evidence to show that the investment in the said house was made by the wife. The assessee further submitted before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 for each year as against Rs. 1 lakh estimated by the WTO. Aggrieved by the findings of the AAC, the assessee has come up in these appeals. 4. Before us, the learned counsel of the assessee reiterated the contentions which were made before the authorities below. It was pleaded that there was no evidence or material with the department to come to the conclusion that the lady was benamidar of her husband and that the real owner of the house was the assessee and not his wife, Smt. Lahar Kaur, in whose name the property stood. In this connection, the learned counsel placed reliance on the decision of the Allahabad High Court in the case of Prakash Narain v. CIT/CWT [1981] 6 Taxman 159. The learned representative of the department on the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with that there are certain other criteria which should be taken into account. Such criteria have been laid down in Jaydayal Poddar v. Bibi Hazra AIR 1974 SC 171. 3. The mere rejection of an explanation would not entitle the department to claim that the consideration for the purchase of the property in the name of a non-assessee was provided by the assessee. 4. Apart from the relationship between the parties, there must be some material or evidence to support the case of benami nature of the transaction. In giving the above guidelines, their Lordships relied on the following observation of the Supreme Court in Jaydayal Poddar v. Bibi Hazra "It is well settled that the burden of proving that the particular sale is benami and the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , for giving the transaction a benami colour ; (4) the position of the parties and the relationship, if any, between the claimant and the alleged benamidar ; (5) the custody or the title deeds after the sale, and (6) the conduct of the parties concerned in dealing with the property after the sale. The above indicia are not exhaustive and their efficacy varies according to the facts of each case. Nevertheless No. 1, viz., the source whence the purchase money came, is by far the most important test for determining whether the sale standing in the name of the one person, is in reality for the benefit of another." Their Lordships also placed reliance on various other authorities of the Supreme Court such as Rai Bahadur Mohan Singh Oberoi v. C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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