TMI Blog2011 (8) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... on there is no operative transfer at all and the title rests with the transferor notwithstanding the execution of conveyance. It is indeed surprising and unbelievable that a person of virtually no means would get life time gain of ₹ 8 lakhs and would not know where he has used/invested the money. It proves that he has no control over the source or destination of funds passing through his hands. - It proves that he has no control over the source or destination of funds passing through his hands. Thus, he is a benamidar of the assessee-firm. Therefore, on the basis of the statement of Sri Mitra (supra) we are of the view that he was the benamidar of the assessee-firm and his income was rightly clubbed with the assessee-firm. - Decided in favor of revenue. - 1 of 2007 - - - Dated:- 17-8-2011 - DEVI PRASAD SINGH, SATISH CHANDRA DR., JJ. JUDGMENT Dr. Satish Chandra J.- 1. This appeal is filed by the assessee under section 260A of the Income-tax Act, 1961, against the judgment and order dated August 25, 2006, passed by the Income-tax Appellate Tribunal, Lucknow, in I. T. A. No. 285/Luc/04 for the assessment year 1995-96. 2. This court, vide order dated Janua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 147 of the Act were initiated in the case of one Sri Pradeep Kumar Mitra (hereinafter referred to as Sri Mitra), resident of 19, Ram Mohan Rai Marg, i.e., the official address of the assessee. From the record, it appears that Sri Mitra entered into an agreement with the assessee-firm pertaining to purchase of land at 13, Jopling Road, Madan Mohan Malviya Marg presently known as Lajpat Rai Marg, Lucknow. Sri Mitra had entered into an agreement for purchase of the land and premises from Smt. Pramila Mehra, Smt. Raj Mehra and Sri Seva Ram who were the co-owners, each having one-third share in the land. The agreement was presented for registration on the same day. At the time of execution of the sale deed, SriMitra made the part payment to each co-owner. Hence, the second notice under section 148 of the Act was also issued to the assessee on March 28, 2002, for the same assessment year (1995-96). 5. The Assessing Officer passed reassessment order pertaining to the assessee-firm in response to the notice dated March 28, 2002, and it was found that Sri Mitra was not having any means and he was merely a benami holder of the assessee-firm. He was not having any existence in Lucknow s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied on the statement given by one Sri Kuldeep Mehra which was recorded during the assessment proceedings of Sri Mitra and not in the course of the assessment proceedings of the appellant-firm. Thus, the statement of Sri Kuldeep Mehra was not admissible as a piece of evidence in the assessment proceedings of the appellant-firm. According to learned counsel for the assessee, the impugned order passed by the Assessing Officer is illegal and erroneous. Sri Mitra was not a benamidar of the appellant-firm hence, the payment made to him cannot be included in the hands of the assessee firm. Thus, in reassessment proceedings, the Assessing Officer has changed his opinion and the same is not permissible. Since all the information, documents and records pertaining to the dealing between the appellant-firm and Sri Mitra were made available to the Assessing Officer at the time of the original assessment order dated March 31, 1999, was passed, so reassessment proceeding is not valid. Lastly, he made a request to set aside the impugned order passed by the Tribunal. 9. On the other hand, Sri D. D. Chopra, learned counsel for the Department, justified the impugned order. 10. On consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs. However, the facts are linked together and, therefore, the development which took place even after the assessment year has to be taken into consideration in order to find out the true nature of transaction. The Assessing Officer has recorded the statement ofSriMitra in the assessment year 1995-96 where it was admitted by SriMitra that he is a man of meagre income doing "dalali" in cloth business. He resides in a house in Delhi belonging to his brother-in-law and there is no movable assets or property either on his name or on the name of his family members. He has further admitted that he was not acquainted with Mool Raj, the partner of the assessee-firm prior to the signing of the builder's agreement dated October 14, 1993, with the assessee-firm. He has even not visited Lucknow in his life prior to the aforesaid agreement. He also did not know anyone about the transaction made while purchasing the land or executing the builder's agreement. He even could not remember the names of the persons to whom he had advanced loans on interest. 14. From the statement of Sri Mitra, it is clear that he is residing at Delhi only and is a man of meagre means. His family consists of himsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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