9911796707
TMI Blog1989 (12) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in the asst. order that in the case of Smt. Asha Rani the assessment for the asst. year 1979-80 was completed on 30-3-1982 wherein on the basis of the facts gathered and the investigation made, she has held to be the benamidar of her husband in respect of the income declared by her from the business of knitting and stitching and income from the aforesaid property. The assessee was asked by the ITO to give details regarding the acquisition and investment made in the house property. The facts stated in the asst. order in respect of the acquisition of the said property and the investment made are as follows : (i) That Smt. Asha Rani wife of the assessee acquired plot No. H/171, Phase No. 1 Ashok Vihar,Delhimeasuring 204.852 sq. meters fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee and since the property has been acquired through an agreement to sell, income therefrom was assessed under the head 'Income from other sources'. 3. The assessee appealed to the CIT(A) who while disposing of the appeal also took into consideration the statement of Smt. Asha Rani recorded by the ITO as also the asst. order made in her case. He referred to the statement made by Smt. Asha Rani, according to which she had income from knitting. The statement of Smt. Asha Rani recorded on16-3-82has been reproduced by the CIT(A) in his impugned order. The CIT(A) concluded that the ITO failed to prove that the property in question actually belonged to the assessee and not to his wife in whose name it stood registered. Aggrieved, the Department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A). It was contended that source of investment of Rs. 1,97,497 in the construction which was started in January 1977 and was completed in November, 1977 was fully explained according to which Smt. Asha Rani had taken loans aggregating to Rs. 1,82,650 from her husband namely, the assessee. All these loans were duly accounted for in the assessee's books of account. It was further submitted that out of the loans taken by Smt. Asha Rani from her husband, she has already repaid part of the loans to the extent of Rs. 42,000. It was pointed out that details of the payments made by Smt. Asha Rani to her husband are given at page 41 of the paper book filed by the assessee. It was further pointed out that part of the loans were repaid by cheques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... measuring 204.852 sq. mtrs. was acquired by an agreement to sell dated2-9-75for a sum of Rs. 37,500 in the name of Smt. Asha Rani. A copy of the said agreement is included in the paper book filed by the assessee. Here it may also be pointed out that the assessee is the proprietor of the concern M/s. Satish Co. The ITO found as a fact that entire sale consideration of Rs. 37,500 for the purchase of the said plot was paid by the assessee from his capital account in the proprietary concern M/s. Satish Co. Not only this, the assessee took loans from three parties, namely, M/s. N. B. Textiles, M/s. Shakti Trading Co. and M/s. Jagdish Weaving Industries. All these loans were transformed by the assessee to the account of his wife and thereafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to hold on the facts of the case and the state of evidence available on the record, that Smt. Asha Rani had any income of her own. So the question of her making any investment in the acquisition and construction of the property did not arise. Substantial loans were raised by the assessee for the purpose of making investment in the construction of the property. It was the assessee who had paid the sale consideration for the purchase of the land. Rental income of Rs. 12,000 were received in respect of a portion of the house property. Once it is found that the property in question was acquired by the assessee benami in the name of his wife, it would necessarily lead to the conclusion that whatever rental income was received in respect of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The trial court decreed the suit holding that she held the property benami for the respondent. The first appellate court dismissed her appeal in 1974 and the High Court affirmed the decision of the lower courts in 1978. The appellant filed a petition for special leave to appeal to the Supreme Court and obtained special leave on15-11-1978. Pending the appeal arising out of the special leave petition, the Benami Transactions (Prohibition of the Right to Recover Property) Ordinance, 1988 was promulgated onMay 19, 1988. This Ordinance was replaced by the Benami Transactions (Prohibition) Act, 1988, which was deemed to have come into force onMay 19, 1988. Before the Supreme Court it was contended on behalf of the appellant that even if the prop ..... X X X X Extracts X X X X X X X X Extracts X X X X
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