9911796707
TMI Blog1981 (10) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the income of the HUF in the firm Rupa Mal Pyare Lal, Bhuchu. Subsequently, the ITO having jurisdiction in the case of the assessee received information that Smt. Parma Devi w/o Dev Raj, had filed a voluntary return for the assessment year1973-74 on 14th January, 1976 in which she offered for assessment Rs. 10,000 out of Rs. 12,000 invested by her in mortgage of agricultural land measuring 34 Kanals 9 marlas vide Mortgage deed no. 2196 dated 4th July, 1972 by Shri Gurdeep Singh s/o Shri Bharpur Singh. The lady deposited Rs. 550 under section 140A as self assessment and further appended a note with the return that she had invested Rs. 12,000 out of her savings but there being no documentary evidence in support thereof, a sum of Rs. 10,000 was being surrendered as taxable income. The ITO raised a protective assessment on the return filed by Smt. Parma Devi on 20th December, 1976 and subjected Rs. 10,000 to assessment. 4. Before completing the assessment proceedings in the wife's case, the ITO, B-Ward, Bhatida, had issued a notice dt 10th December, 1976 under section 148 of the Act. Such notice was served on 28th January, 1977. In pursuance to this notice assessee filed his re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10,000 respectively and these ladies filed returned of income at Rs. 10,000, Rs. 10,000 and Rs. 9,000 each as income from other sources. According to ITO all the ladies attached a note to the return that the aforesaid investment was made out of savings and since there was no documentary evidence about the genuineness, the amount was being shown as income. (c) At the time of the assessment of Smt. Parma Devi w/o Sh. Dev Raj, Smt. Savitri Devi w/o Sh. Pyare Lal and Smt. Krishna Devi w/o Sh. Manohar Lal, it was stated that investment was out of the savings of the past years of married life, but the amount was being surrendered for assessment since there was no documentary evidence about cash savings. (d) The ITO, B-Ward, Bhatinda, who had made the assessment under section 143 (3) observed that facts in the assessment were not genuine and were not acceptable, since the ladies did not have any source of income from where the savings of that amounts had taken place. Therefore, the assessments in the hands of the ladies were completed protectively and notice under section 148 issued to the appellant. 3. Taking into consideration the fact that before issuing notice under section 148 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated that they had accompanied Sh. Gurdeep Singh alone and nobody from their houses had been with them while all the three deeds of mortgage were registered on the same date i.e. 4th July, 1972. According to the ITO, the statement of the husband that he had no knowledge of the money being advanced by his wife was unbelievable. According to the ITO, if it was contended that no part of the money was advanced by the appellant then the question which was required to be decided was her Smt. Parma Devi, the wife of the appellant could have saved the said amount from her own sources. For sorting out this issue, the ITO gave an opportunity to the appellant to explain the source of Rs. 12,000 in the name of his wife. Vide written reply 23rd January, 1979, the counsel for the appellant placed reliance on the judgment of Supreme Court in the case of Commissioner v. Daulat Ram Rawat Mal (1973) 87 ITR 349 (SC) that the onus lay with the Deptt. to prove that the money came from the appellant. It was however, contended before the ITO that burden was on the person who alleged that the particular transaction was benami. However, according to ITO when a transaction was between persons who are infidu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able income of the appellant." 6. At this stage, if we only notice the assessment order dated 20th December, 1976 passed in the case of Smt. Parma W/o Sh.Dev Raj, it shall have the effect of resolving the whole controversy before us: Assessment Order Return showing income of Rs. 10,000 has been filed on 14th January, 1976. Statutory notices were served and complied with Shri. R.K. Goel. Advocate attended the proceeding and filed the assessee's affidavit were she deposed that she made investment of Rs. 12,000 on mortgage of agricultural land owned by S. Gurdeep Singh S/o Bharpur Singh vide mortgage deed No. 2196 dated 4th July, 1972 and the investment made was out of savings of several years of married life. That in absence of any documentary evidence out of cash savings of Rs. 12,000, she has surrendered Rs. 10,000 for taxation in income-tax purposes. She further deposed that her husband did not advance any money for the mortgage of the land referred above. In response to summons under section 131, the lady attended the proceeding and her statement was recorded on oath. In this statement she affirmed the facts already mentioned in the affidavit. During the course of statement i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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