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TMI Blog2014 (2) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... at she was confused and nervous. Question No. 24 and its answer reads as under;- “Q24. In the statement recorded on the date of search you have specified that you are not filing any return of income or have any business concern. Please clarify as to why you had stated so when today you are doing timber business. Ans. I denied doing any business as I was nervous and thought the questions being asked related to my husband’s business.” Every person during the search sometimes nervous. Further, we find that Revenue has not shown whether any capital has moved from Punjab Plywood Industries to M/s Punjab Timber Trading Company. In the absence of such nexus, there is no provision to hold that the firm i.e. M/s Punjab Timber Trading Co run ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Punjab Timber Trading Co. Please state the details of the trading being carried out by this proprietorship concern. Also please produce the records / books of this concern , if this is actually being run by you. Ans. No, I am not running any such concern. I do not know anything about M/s. Punjab Timber Trading Co. So I don t have nay book of accounts nor anything with regard of this firm. As I stated earlier also, I am a housewife only and I don t contribute to the business activities of my husband or his brother in any manner whatsoever I just sign the income tax return as instructed by my husband. Q. Do you have anything to say anything in respect of the above? Ans. I have nothing to say as I am housewife only and I am abso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng to her, Smt. Meena Garg i.e. the assessee has only lent her name to this business and, therefore, income was held to be belonging to M/s Punjab Plywood Industries. 6. On appeal, it was mainly submitted that Punjab Timber Trading Co was a proprietary concern of the assessee and the assessee had independent PAN Number. This proprietary concern was started in 1997. It was contended that income can be clubbed under the chapter containing sections 60 to 65 and if those provisions are invoked then the income of the wife could have been at best clubbed in the hands of her husband. There is no provision to club the income of an individual to the income of some other firm where husband is a partner. Further, a reference was made to the Benami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer. 9. We have considered the rival submissions carefully and find that in the case of E.A.E.T. Sundararaj 95 ITR 454 (Mad.) ((supra) it was decided under the old Act. In any case in that case the firm was held to be benami because of the following facts:- (i) The two partners of the firm were the wife of the karta of the Hindu undivided family and the wife of an undivided member of the Hindu undivided family ; (ii) The capital provided by the partners was lying in deposit with others and was bringing in some interest to the ladies. (iii) The business of the firm was also in the same line as that of the assessee ; and there was no specific reason for the wives of the members of the family starting a rival business. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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