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2018 (12) TMI 970 - AT - Income TaxDeemed income - unexplained money/investment toward acquisition cost of AGA through GPOA - transfer of a gas agency - Valuation of business - taxability of the impugned sum in the assessee’s hands - Held that:- Circumstantial evidence constitutes a good ground for inference as to ownership of an asset, i.e., of belonging to the assessee, or investment therein by him (C.K. Sudhakaran v. CIT [2005 (9) TMI 68 - KERALA HIGH COURT]), the other, overwhelming inference that arises is of the assessee being, on the contrary, a front man for others. The money, after all, could directly have exchanged hands between the owner and the Vendees. The amount disclosed as salary income could well be the commission income allowed to him for being an attorney, or for acting as a conduit of funds. The Revenue has not caused proper verification or an investigation into the facts, with the ld. CIT(A), rather than completing the process initiated by the AO, merely proceeded by, as it were, blaming the AO, whose efforts were hampered by the lack of proper assistance by the assessee, constraining him to draw inferences on the basis of the material before/information available with him. Taxability of the impugned sum in the assessee’s hands is dependent on the basic facts, including the transfer of the gas agency itself, yet unascertained, the primary onus to lead which is on the assessee. No fetters are placed on either side, even as the burden to prove his return, and the claims preferred thereby, is on the assessee, who in the present case is in receipt of money [CIT v. Calcutta Agency Ltd. [1950 (12) TMI 4 - SUPREME COURT] and CIT v. R. Venkata Swamy Naidu [1956 (2) TMI 3 - SUPREME COURT]. The AO shall adjudicate afresh, issuing definite findings of fact, in accordance with law, and after allowing the assessee proper opportunity to state his case. The matter, accordingly, setting aside the impugned order, is restored to the file of the AO for the purpose. Revenue’s appeal is allowed for statistical purposes.
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