1992 (5) TMI 63

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....an expert in the fields of market research, fashion trends and analyses and in the business she had sufficient manpower and establishment to carry out comprehensive studies in this connection of European countries. The assessee was approached by M/s Junach Agencies to carry out study, research, market abroad, develop a range of Hi-Fashion garments, provide samples, ensure quality of the fabric, submit weekly reports, etc. For the said services M/s Junach Agencies agreed to pay Rs. 2.50 lakhs. The travelling and other expenses related to the above which the assessee has to carry out were to be met entirely by the assessee. Such similar contracts were entered by M/s Junach Agencies with the assessee. The Assessing Officer noticed that the ass....

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....unt of consultation, etc., stated that she was accounting the consultation charges on cash basis. According to the assessee, since the accounting year of the assessee was30th June, 1982, the amounts that were actually received upto June, 1982 should have been considered and not those amounts realised or received from July, 1982 on wards. The Assessing Office as well as the CIT(A) were of the opinion that no real business was done by the assessee and the payments allegedly claimed as having been made or to be made to Designing Survey Consultants, the proprietorship concern of the assessee, by M/s Junach Agencies, a partnership concern, and M/s Junach Pvt. Ltd. Were bogus, hence, the amounts are to be taxed on protective basis in the hands of....

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....ether substantive assessment was made in that firm's hands, the Departmental Representative could not provide any reply whatsoever. 5. Since a concern which has been treated as benami of another, filed return and the assessment is made on protective basis, the same could have been so made restricting the amount assessed at the returned figure. However, since neither the assessee nor the Revenue could provide us any assistance in regard to the status of assessment of M/s Junach Agencies, we are not in a position to decide whether the assessee was rightly treated as benami or could not be said to be a benami of M/s Junach Agencies. There is not even whisper in this direction in the orders of the authorities. We have, therefore no other opt....