TMI Blog2004 (5) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... Shri Janak C. Vyas which are as under: The assessment in this case was originally made under s. 143(3) of the Act on protective basis. The assessment was set aside by the CIT(A) with the direction that fresh assessment should be made after making enquiries on the line suggested in the appellate order. The background facts of the case noticed from the order of the CIT(A) are that a search was carried out in the case of Shri Manhar M. Kakadia on 19th Jan., 1994. In the course of search it came to light that a large number of flats in Deepa Co-operative Housing Society had been booked in benami names. The assessees under consideration were those benamidars. The money for this investment had come from Shri Narottambhai Patel, an NRI. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investment made by Shri Janak C. Vyas. The AO required personal presence of the assessee and issued summons under s. 131 of the Act but the assessee did not put his presence before the AO. Under these circumstances the AO observed that there is no alternative but to finalise the time-barring assessment on the basis of information available. The AO repeated the addition which was made in the original assessment order. The details of the addition made in these appeals are as under: Shri Janak C. Vyas 1,50,000 Shri Kantilal Devjibhai Patel 2,00,000 Shri Bharat R. Patel 1,00,000 Smt. Sudhaben H. Bhatt 2,00,000 Shri Himansu M. Bhatt 1,25,000 Shri Ajay D. Patel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 996-97 should not be less than Rs. 9-10 lakhs. Since the number of such flats sold should be around 40, one can imagine the massive amount of concealment involved. The issue, therefore, deserves careful and urgent attention of the concerned authorities. Apart from the tax angle, serious violations of the Indian Penal Code are also involved. It has been mentioned earlier how bank drafts have been purchased in a dead person's name. In all transactions, the purchase of drafts are not the actual purchasers and so signatures at certain places could be forged. Shri Modi states that he is in possession of clear evidence on forging of a signature in connection with illegal sale of a flat. Retraction of a statement on oath is also a criminal offe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that on similar facts in the case of Smt. Anitaben M. Parikh and Shri B.M. Patel the Dy. CIT(A) vide order dt. 28th Nov., 1996 and in the case of Shri Jayrajsingh vide CIT(A)'s order dt. 25th Sept., 2000 additions have been confirmed. The learned Authorised Representative submitted that the AO wanted to have examined the facts of the case and issued a summons under s. 131 but the assessee failed to comply with that summons. The learned Departmental Representative urged that the order of the CIT(A) be set aside and that of the AO may be restored. 6. The learned Authorised Representative reiterated his submissions which were made before the lower authorities. The learned Authorised Representative submitted that the AO has not examined the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he benamis could claim ownership or possession. The syndicate naturally wanted their acts to be smoke-screened. One way to do this was to hold the name-lenders to be the real owners. The learned Authorised Representative submitted that the additions were made in the hands of the benami just to support the syndicate's cause. It is also the submission of the learned Authorised Representative that the payments were through banking channel, on examination of this channel it is clearly evident that these persons were the benami persons. The learned Authorised Representative supported the order of the CIT(A). 7. We have considered the rival submissions of the parties and perused the record. After considering the totality of the facts of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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