TaxTMI 
TaxTMI 
1978 (11) TMI 90
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....overnment institutions, like Nagaland Pulp & Paper Co. Ltd., Nagaland Sugar Mill Co., Dimapur, Executive Engineer, P.W.D. Imphal and others. Before the ITO the assessee denied that the businesses in the names of his wife and of the brothers-in-law, were done by him. The ITO examined the wife and other relatives, who confirmed that the business was done by them individually and that the individual business as mentioned in the assessment order was done by them by obtaining a Bank loan under the different trade names from the State Bank of India, Imphal. The ITO, however, found that the assessee was the guarantor of all the overdrafts etc. of these relatives. The ITO disbelieved the statement of the wife of the assessee, Smt. Jamuna Devi as we....
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....ntended that from the facts of the case brought out by the ITO, it was clear that the assessee Shri Rup Advani was the owner of the different business, in view of the facts that he was the guarantor for all the loans and over-drafts taken by the relatives from the State Bank of India, Imphal, for carrying on the different businesses. The wife of the assessee Smt. Jamuna Devi is stated to be proprietress of M/s Union Form & Hoe Co., and that M. Tuleswar Singh, brother-in law of the assessee is a proprietor of Red Star Corporation and M/s Modern Agencies. The other brother-in-law of the assessee Shri M. Irabonta Singh is stated to be the proprietor of M/s India International (Agents). According to the ITO the different businesses carried on i....
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....of the business and if the assessee wanted the relatives to prosper, there was nothing wrong for him to render possible help. But this fact alone was not sufficient to consider or to conclude that the assessee was the owner of the different businesses. We find that there is no evidence or material to indicate that the assessee provided the funds for or financed the different businesses. From the statement of the relatives it is seen also that the different businesses were carried on by those relatives and not by the assessee. We do not find any material that the assessee had control in any of the businesses carried on by the relatives. The Revenue has not been able to furnish material or information that the profit or income from those diff....