TaxTMI 
TaxTMI 
2004 (9) TMI 315
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....ent in the property in question and the rent received therefrom by the assessee, are identical. 2. First, we would like to mention that the learned Authorised Representative for the assessee did not press ground No. 1 of the appeal of the assessee relating to the asst. yr. 1993-94 pertaining to the issue of no opportunity of being heard being provided to the assessee. Accordingly, this ground of appeal taken by the assessee is rejected as not pressed. (ii) The other issue raised in ground No. 2 of the appeal of the assessee relating to the asst. yr. 1993-94 pertains to her share of investment made in the construction of the property in question. (iii) The last issue raised in ground No. 3 of the appeal of the assessee for the asst.....
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.... in each of the assessment years. 3.2 Aggrieved with the orders of the AO, the assessee filed appeals before the CIT(A) and the CIT(A) after analysing the general power of attorney executed by the assessee on 26th March, 1993, in favour of Smt. S.P. Kaur and the lease agreement entered into with the FCI for renting out the property to FCI, came to the conclusion that the assessee was having 50 per cent share in the property and the assessee has given general power of attorney to Smt. S.P. Kaur to receive rent from the tenant, upheld the order of the AO making the impugned addition against the assessee in asst. yrs. 1993-94, and 1994-95. 3.3 However, in the asst. yr. 1997-98, relying upon his earlier orders passed for asst. yrs. 1993-9....
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....sed Representative for the assessee, in the instant case, the assessee has neither made any investment in the construction of the property nor has received any rent on account of lease deed executed between Smt. S.P. Kaur and the tenant, FCI. The GPA was executed by the assessee in favour of Smt. S.P. Kaur simply in good faith but she had opened a joint bank account and received the rent without the knowledge of the assessee and without intimating the assessee and not in accordance with the terms and conditions of the GPA executed by the assessee in favour of Smt. S.P. Kaur. 3.5 On the other hand, learned Departmental Representative for the Revenue referring to the relevant portion of the GPA, lease agreement and the statement of the ass....
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.... that in case Smt. S.P. Kaur, the co-owner of the assessee, claims that on the basis of this GPA, she executed the rent agreement with the tenant, FCI, and also made construction of the property for the investment of which the assessee made the payment in cash from time to them, then we should only look into the acts and deeds done by Smt. S.P. Kaur, after the execution of the GPA in favour of Smt. S.P. Kaur by the assessee because generally, by a GPA, a person authorises its attorney to do acts, deeds and things in respect of the property, etc., after the date of execution of the GPA, whereas, in the instant cases, this GPA executed by the assessee in favour of Smt. S.P. Kaur is an exception to the rule because by this GPA, she seems to be....
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.... have mentioned the existing building on the land in question in this GPA when according to the assessee, she had not made any investment in the construction of the building nor she has authorised Smt. S.P. Kaur to raise any construction on this plot of land. From this fact, it is clear that this GPA has been executed by the assessee in favour of Smt. S.P. Kaur to do every deed and act or thing in connection with the building which was already in existence. Therefore, from this document, the statement of the assessee that she has not invested any amount in the construction of this building stands falsified and hence the plea of the assessee in this regard is rejected. Again at p. 2 of the GPA, we find that it has been mentioned; to receive ....