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TMI BlogAddition u/s 69A - ambit of the word "owner" and "valuable article" for the purpose of additions as Unexplained money, etcX X X X Extracts X X X X X X X X Extracts X X X X ..... pellant cannot be treated as the owner, as appellant was a carrier. It fulfilled its obligations by lifting the goods in question and delivered the same. In fact, it is the contention of the appellant that the goods had been delivered and there was no misappropriation. There was no complaint by the oil companies from whom, the bitumen had been lifted, about there being short delivery. There was even no complaint from the Consignee Department. Judgement: K. M. JOSEPH, J. it is not the case of either party that the appellant had become the owner of the bitumen in question in a manner authorised by law. On the other hand, the specific case of the appellant is that the appellant never became the owner and it remained only a carrier. However, as noticed, if it is found that there has been short delivery, this would mean that the appellant continued in possession contrary to the terms of contract of carriage. A CARRIER, A BAILEE? To apply Section 69A of the Act, it is indispensable that the Officer must find that the other valuable article, inter alia, is owned by the assessee. A bailee, who is a common carrier, is not an owner of the goods. A bailee who is a c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same person. It may be true that ownership may be associated with a better right to be in possession and actual possession in a given case may be harmonised with ownership. Being in possession with a right to be possession may lead to a presumption that the possessor is the owner, unless it be that there are indications to the contrary. The beneficial vesting may in the context clothe the person with title as the owner. Another concept which emerges is a person in receipt of money having actual control over the property with no person having a better right to defeat his claim of possession may open the doors to a finding that he is the owner within the meaning of Section 69A. A person in actual physical control of the property and realising the entire income for his own use may indicate the presence of ownership. The absence of the conveyance needed to complete the transfer may not detract from a person being found to be the owner. The soul of the reasoning appears to be the entitlement to receive the income from the property in his right . Present Case Proceeding on the basis that there was short delivery of the goods by the appellant, inevitably, the Court must find th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... origin under a contract of bailment. This is also not a case where any case is set up of the carrier exercising rights available in law entitling it possess goods as of right or pass on title to another under law as permitted. Hence, this Court would hold that the Assessing Officer acted illegally in holding that one appellant was the owner and on the said basis made the addition. OTHER VALUABLE ARTICLE - PRINCIPLE OF EJUSDEM GENERIS; NOSCITUR A SOCIIS Unlike a document of title or a fixed deposit receipt, which cannot, by itself, be disposed of or alienated, bitumen would be goods, which can be transferred. It would have a value in the market depending upon its quality. Section 69A provides for unexplained money, bullion, jewellery . It is thereafter followed by the words or other valuable articles . Does this mean that the words other valuable articles must be read ejusdem generis? The principle applies when the following conditions are present [Principles of Statutory Interpretation by Justice G P Singh, 14th Edition]: (1) the statue contains an enumeration of specific words; (2) the subjects of enumeration constitutes a class or category; (3) that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r worth a great deal of money, they would stand excluded from the purview of Section 69A. On the other hand, let us take an example where a person is found to be in possession of 500 tender coconuts. They would have a value and even be marketable but it may be wholly inapposite to describe the 500 tender coconuts as valuable articles. It goes both to the marketability, as also the fact that it may not be described as worth a good price. Each case must be decided with reference to the facts to find out that while articles or movables worth a great deal of money or worth a good price are comprehended articles which may not command any such price must stand excluded from the ambit of the words other valuable articles . The concept of other valuable articles may evolve with the arrival in the market of articles, which can be treated as other valuable articles on satisfying the other tests. Bitumen may be found in small quantities or large quantities. If the article is to be found valuable , then in small quantity it must not just have some value but it must be worth a good price {See Black s Law Dictionary (supra)} or worth a great deal of money {See Concise Oxford Di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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