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TMI Blog2022 (6) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... long with one Shri Rakesh Singh, purchased a property, valued at Rs. 31.50 lacs (as per AIR information), on 10/08/2009, i.e., during the relevant year, for a stated consideration of Rs. 11 lacs. The assessee returning an income for the year at Rs. 1.73 lacs only, he was subjected to reassessment proceedings, culminating in an assessment at the returned income. No enquiry was made by the Assessing Officer (AO) in the reassessment proceedings in respect of the substantial difference between the fair market value and the stated purchase consideration (as per sale deed), to examine the source of investment in which the reassessment proceedings had been initiated. The assessee's (an Advocate by profession) version of being only a name lende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee has been removed from the records maintained, by the State Revenue Authority. If not, how can it be relied upon that a person (who is by profession an advocate) will allow to use his name for such a big deal and that too for a small fee of Rs. 10,000/-. (iv) Whether late Shri Rakesh Singh's heirs have admitted the facts narrated by the assessee. (v) The A.O. has also not examined the sellers of the property who could have told the reality of cash payment of Rs. 6,00,000/-. (vi) Who had paid the stamp duty of Rs. 3,11,100/-." He, accordingly, remitted the matter back to the AO for verification on the grounds stated, holding as under:- "07. I have gone through the entire assessment records, assessment order and written ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... persons, should have agreed to lend his name as the owner of an immovable property. It is incredulous to believe that he did for a sum of Rs. 10,000, which may be his fee for legal support/assistance. Further, the POA dated 01/10/2009 was valid only for a period of one year, for which she would take us through para 5 thereof (PB pg. 5). Further, at page 2, para 4 of the sale deed (PB pg. 96), the seller, Smt. Sudha Singh, confirms having received the entire payment, i.e., Rs. 11 lacs, at one go. 3.2. Shri Agrawal would, in rejoinder, state that RS, the owner, intended to sell the land after plotting, and which was in fact done soon after purchase, and that explains the POA term of one year as well as clarifies on the possession of the plo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e may ask, does the same, i.e., name lending, serve? Could a transaction, much less the one at hand, being in respect of acquisition of IP, be entered into without any reason or purpose? The assessment order abysmally fails on the ground of lack of enquiry which, inasmuch as it reflects non-application of mind, is one of the infirmities that renders an order as erroneous and prejudicial to the interest of the Revenue and, thus, liable for revision u/s. 263, even as explained by the Apex Court in Malabar Industries Co. Ltd. v. CIT [2000] 243 ITR 83 (SC); the other three being: wrong assumption of facts; incorrect application of law; and omission to observe the principles of natural justice. The case law in the matter is legion, with a series ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, with that over that period attracting stamp duty. Why, to begin with, did the assessee lend his name in the first place? Further, the POA only authorizes RS to sell the property, but does not relinquish the assessee's right over the sale proceeds thereof. What value, then, the same? It is then said that the seller confirmed the receipt of Rs. 6 lacs in cash from RS, who gave her the cheque in the first place, so that there was nothing to doubt the same. Apart from the fact that the same is contradicted by the sale deed itself wherein the seller confirms receipt of the entire sale consideration at the time of the sale deed itself, the argument does not stand the test of scrutiny. How, one may ask, would the seller know about the sourc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o do so. Why, it may also throw light on how the sum of Rs. 5 lacs, paid through his bank account, came to be deposited therein, as indeed the source of payment of stamp duty at Rs. 3.11 lacs. The investment of the sale proceeds by the seller, if forthcoming, could also help enable establish the truth of the matter. 4.3. Before parting with this order, we may, if only for the sake of completeness of our order, advert to one of the arguments raised by Sh. Agrawal, stating that there may be no dearth of inquires that could be raised in the matter, so that, going by such a consideration, every order adverse to the Revenue could possibly be regarded as erroneous insofar as it is prejudicial to the interest of the Revenue, liable for revision u ..... X X X X Extracts X X X X X X X X Extracts X X X X
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