Benami allegation and mere suspicion cannot displace factual findings in wealth-tax assessment

The Tribunal's deletion of the wealth-tax addition was upheld because the alleged voluntary disclosures were not shown to have been made by the assessee, and there was no material to prove that the declarants were benamidars of the assessee. Mere relationship between the parties was held to create only suspicion and not proof of a benami arrangement, especially where there was no specific linkage between any declarant and any partner of the assessee-firm. These were treated as findings of fact, and the addition of Rs. 30,000 was sustained as deleted from the assessee's net wealth.

---

---

Issues: Whether the Tribunal was right in law in confirming the deletion of the addition of Rs. 30,000 from the net wealth of the assessee.

Analysis: The reference arose under section 27(3) of the Wealth-tax Act, 1957. The Tribunal had found that the voluntary disclosures relied upon were not made by the assessee, that there was no material to show that the declarants were benamidars of the assessee, and that mere relationship between the parties could at best raise suspicion but could not by itself prove a benami arrangement. The Tribunal also noted the absence of any specific linkage between any declarant and any of the partners of the assessee-firm. These were treated as findings of fact.

Conclusion: The Tribunal was right in law in confirming the deletion of the addition of Rs. 30,000 from the net wealth of the assessee, and the question was answered in the affirmative, in favour of the assessee.

---