https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=761639 https://www.taxtmi.com/caselaws?id=761639 Benami Property Transactions - attachment and the reference made by the Initiating Officer (IO) - allegation against the appellant was for acquisition of benami properties while he was employee of Piyush Gupta, the defendant No.2 before the Adjudicating Authority. The appellant was getting meagre salary of Rs. 15,000/- per month. However, during the course of search and seizure, it was found that the appellant Mohd. Farooq made investment of Rs.1,41,37,500/- - HELD THAT:- We find that the appellant could not produce any document worth acceptance to prove the source of income for purchase of properties for the total value of Rs.1,41,37,500/- which includes the property at Item No.8 of Table `A but even for the properties mentioned at Item Nos. 1 to 7, the appellant failed to prove the source for its acquisition. Appellant has tried to make out a case for disclosure of source of income by submitting the documents along with the rejoinder but they have not been accepted in absence of application for taking additional documents on record at the appellate stage and otherwise it was not pressed by the appellant. We otherwise find that the assessment order for the block period 2011-12 to 2021-22 is subsequent to the impugned order and cannot support the appellant. The perusal of the assessment order otherwise shows the conduct of the appellant as he could not show source to acquire the properties while his statements were recorded under Section 19 of the Act but submitted I.T. return subsequent to it. The addition of income can be acceptable under the Income-Tax Act but it cannot be used for adjudication under the Act of 1988 and otherwise if the practice adopted by the appellant is accepted, every benamidaror beneficial owner get the assessment of block years by one order after paying the income tax and penalty without submission of proof of income before the IO or the Adjudicating Authority. We have made comment in reference to the assessment order though a serious objection of the document has been taken and as such we have not recorded our finding going deep in the assessment order but touching the legal background under which assessment of income by the Income-tax authority has been made vis- -vis the adjudication under the Act of 1988. The detailed finding recorded by the Adjudicating Authority rather disclosed as to how the benami properties came in the name of the appellant benamidar. The finding in regard to each benami property has been recorded. The payment to acquire the property said to have been made largely in cash without disclosing the source for acquiring the cash. The Adjudicating Authority has made detailed discussion for purchase of each property vis- -vis the source of income. Thus, finding that the appellant failed to submit the material to prove the source of income before the Adjudicating Authority and even while filing the appeal, no document was submitted to prove the source for acquisition of property. The documents submitted along with rejoinder were without permission of the appellate court and were not relied later on by the counsel. The learned counsel for the appellant referred to the judgment of the Apex Court in the case of GanpatiDealcom [ 2022 (8) TMI 1047 - SUPREME COURT ] and more specifically reference of Paras 67,68,124 and 125 has been given. The fact, however, remains that the Apex Court has recalled its judgment in the case of GanpatiDealcom (supra) by the order [ 2024 (10) TMI 1120 - SC ORDER (LB) ] Thus, argument raised by the appellant in reference to the aforesaid judgment no more holds field. We have otherwise analyzed the case to find out the source to acquire the property by the appellant and finding no material favourable to the appellant, the appeal would fail and is dismissed. Case-Laws Benami Property Tue, 05 Nov 2024 00:00:00 +0530