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TMI Blog2011 (8) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... dated March 28, 2002, under section 148 of the Income-tax Act could have been issued after four years from the relevant assessment year, i.e., 1995-96 had expired as provided under section 149 of the Income-tax Act ? Q. Whether the income of Sri P. K. Mitra can be clubbed with the income of the appellant-firm even though the conditions prescribed under the provisions of Chapter V of the Income-tax Act are not established or fulfilled ? I. Whether the Income-tax Appellate Tribunal, the Commissioner of Income-tax (Appeals)-I and the Assessing Officer could have passed orders dated August 25, 2004, and March 28, 2003, relying on Shri Kuldeep Mehra's statement which was given during the assessment proceedings of Sri P. K.Mitra a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment proceedings under section 147 of the Act were initiated in the case of one Sri Pradeep Kumar Mitra (hereinafter referred to as Sri Mitra), resident of 19, Ram Mohan Rai Marg, i.e., the official address of the assessee. From the record, it appears that Sri Mitra entered into an agreement with the assessee-firm pertaining to purchase of land at 13, Jopling Road, Madan Mohan Malviya Marg presently known as Lajpat Rai Marg, Lucknow. Sri Mitra had entered into an agreement for purchase of the land and premises from Smt. Pramila Mehra, Smt. Raj Mehra and Sri Seva Ram who were the co-owners, each having one-third share in the land. The agreement was presented for registration on the same day. At the time of execution of the sale deed, S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the notice could have been issued as per the then law. For this purpose, he has drawn the attention of the court to section 149(1), which is reproduced hereunder : "149.(1) No notice under section 148 shall be issued for the relevant assessment year,- (a) if four years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b) ; (b) if four years, but not more than six years, have elapsed from the end of the relevant assessment year unless the income chargeable to tax which has escaped assessment amounts to or is likely to amount to one lakh rupees or more for that year ;" 7. He further submits that the second notice dated March 28, 2002, issued under section 148 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable to the Assessing Officer at the time of the original assessment order dated March 31, 1999, was passed, so reassessment proceeding is not valid. Lastly, he made a request to set aside the impugned order passed by the Tribunal. 9. On the other hand, Sri D. D. Chopra, learned counsel for the Department, justified the impugned order. 10. On consideration of the rival submissions and a perusal of the record, it appears that Sri Mitra has filed the first time return at Lucknow by showing the address as 19, Ram Mohan Rai Marg, Lucknow, which is the official address of the assessee-firm. With the co-owner pertaining to the property of Jopling Road, it was Sri Mitra who entered into an agreement. It is pertinent to mention that notice unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -firm. 12. Learned counsel for the appellant submits that Sri Mitra was an independent assessee, so, his income cannot be clubbed in the hands of the assessee-firm. On the other hand, the learned counsel for the Department justified the impugned order. 13. After hearing the counsel of both the parties and a perusal of the record, it appears that the considerable development activity to the piece of land was continued for six years and accordingly the assessment has been made in different assessment years. However, the facts are linked together and, therefore, the development which took place even after the assessment year has to be taken into consideration in order to find out the true nature of transaction. The Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 16. As per section 2(a) of the Benami Transactions (Prohibition) Act, 1988, a "benami transaction" means any transaction in which property is transferred to one person for a consideration paid or provided by another person. By applying the test of weighing the probabilities and by finding out the source of money and also the nature and possession of the property after the purchase, a conclusion as to whether a transaction is benami or not can be arrived. In the case of Bhim Singh v. Kan Singh, AIR 1980 SC 727, it was held that where a person buys a property with his own money but in the name of another person without any intention to benefit such other person, the transaction is called benami. In that case, the transferee holds th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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