TaxTMI 
TaxTMI 
1985 (2) TMI 88
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....f the assessee. The return has been revised consequent to the order dated26-5-1983of the Additional District Judge. Photo copy of the Court's order has been filed. The facts of the case in brief are that the assessee Miss Abha Bhandari and her sister Miss Reva Bhandari received plot No. 7 and plot No. 6, Padmini Enclave in gift from their father Maj. General B.N. Bhandari. As discussed in the case of Miss Reva Bhandari during the assessment year 1968-69 a partnership known as Revabhai was formed between the two sisters and these plots were shown as the assets of the partnership. When the partnership was executed the assessee Miss Abha Bhandari was minor and no valid partnership came into existence. However, the claim of the partnership was withdrawn and the partnership deed was never acted upon. Miss Reva Bhandari constructed house on her plot received in gift by her father. She alone was held to be owner of the house on the basis of evidences produced and examined. The property constructed was let out on rent. In view of the tenancy agreement having been entered in the names of both the sisters, the income from property was declared 50 per cent each in case of both the sisters. On....
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....e owner of this property and she alone is assessable for the rental from this property. The counsel's argument and the evidence relied upon cannot be accepted as valid and worthy of credence. After all Miss Reva Bhandari can spend or part with her income in any manner she likes but this does not affect the assessability of income in her hands as per existing provisions of the Act. Since the assessee is not entitled to any share from the property income, the revised return has not been acted upon." At the first appellate stage, the following contentions were raised on behalf of the assessee : "1. Miss Abha Bhandari is the younger of the two daughters of Major General B.N. Bhandari. He gifted two equal shares of an undeveloped land, one to each daughter, out of his share of land in a colony which was later named 'Padmini Enclave' in Hauz Khas area, New Delhi. This gift to each daughter was made on10-7-1964at the original cost price of Rs. 5,867. This land was under section 4 of Acquisition Act at the time, hence there were no buyers willing to purchase the land. Gift-tax return was filed by him. It was after sometime that the coloniser developed this colony and named it 'Padmini En....
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.... the property....' It has further been argued by the appellant's counsel : "That the Court has based its decree order on facts and not merely ratified the compromise as stated in the Assessment Order. If it was a mere ratification of the compromise, the Court would not have decreed that 'the claim for rendition of account is decreed by the court', or that 'A preliminary decree be passed against defendant,' or that 'The plaintiff is entitled to share'. Assessment Order has not been based on the basic facts of the case. The genuineness of the case has not been comprehended. Miss Reva Bhandari is not entitled to all the income from the property as the construction has not been done out of any funds which could be said to be her own." The learned AAC after consideration of the facts of the case and the submissions made before him on behalf of the assessee as also after going through the documents relied upon by the assessee held that the learned ITO was not justified in not accepting the revised return and including therein (the assessment) one-half share in the property income of 6, Padmini Enclave, New Delhi. He also directed the learned ITO to assess one-half share in the above ....
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....lease or any period of renewal. 5. It is further understood and agreed that in case the tenant decides to curtail, withdraw, change its programs or personnel, or in the event that the Government of the United States acquires its own property or assigns the occupants other quarters owned or leased by the United States Government, the tenant shall be at liberty to terminate this lease upon giving notice to the landlord 30 days in advance without the landlord having right to any payment other than for rental to the date the tenant surrenders the premises or expiry of the notice period, whichever is longer. In case of any termination by the tenant the landlord agrees to refund to the tenant any unused portion of advance rental payments made hereunder. In the event the landlord fails to refund unused advanced rental, the tenant reserves the right to recover the amount by sub-leasing the premises at its option or take such measures that the tenant may deem necessary for the recovery thereof. The landlord hereby gives his consent to the occupancy of the premises by any other agency of the United States Government. 6. The landlord represents and warrants that he/she is duly authorized t....
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....t will arrange the treatment on behalf of the landlord and deduct the cost thereof from the rental. 9. The landlord agrees that any other premises in the building shall not be let and/or used for any illegal or immoral purpose, neither for gambling, nor for the sale of alcoholic beverages taking into account, in this connection, the fact that an agency of the Government of theUnited States of Americaoccupies part of the building. 10. The tenant shall have the right, during the existence of this lease, to make alterations, attach fixtures and additions, structures and signs in or upon the demised premises provided such alterations, additions and/or structures shall not be detrimental to or inconsistent with (i) the rights granted to other tenants on the property or in the building; and/or (ii) bye-laws of the Municipal Corporation; local Government or any other statutory body. The fixtures, additions or structures so placed in or upon or attached to the said premises by the tenant shall be and remain his property and may be removed therefrom by the tenant prior to termination of this lease, or within a reasonable time after the lease is terminated. The tenant, if required by the l....
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....c nature which are or may be assessed against the property of which the premises covered by this lease form a part. (b) The tenant shall pay the electric, water and gas consumption charges incurred during the period covered by this lease or any extension thereof. (c) The landlord agrees that he/she will pay, within thirty days after the effective date of this lease, all the utility charges (such as electric, water consumption, conservancy, gas, telephone, etc.) due against the property up, to the date the tenant occupies the premises. If the landlord fails to do so and the tenant receives outstanding bills, the landlord hereby authorizes the tenant to pay such bills on his/her behalf and deduct this amount so paid from rent due or to become due. 16. (a) No change, variation or modification of the terms and conditions set forth herein shall be valid unless incorporated in an amendment to this lease signed by both parties. (b) Any notice under the terms of this lease shall be in writing and signed by a duty authorized representative of the party giving such notice. Notices shall be addressed to the tenant at the American Embassy,New Delhiand the landlord at E-22, Defence Colony,N....
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....e Order No.------ U.S. Department of State---American Embassy, New Delhi, India PAID BY (Department or Establishment) This document prepared at 6-1-1067. (Place) (Date) Purchaser : The United States Government, Dr. Seller. (Payee) : Miss Reva Bhandari and Miss Abha Bhandari. Address of Seller : E-22, Defence Colony, New Delhi. Contract No. S419-FBO-344 dated 5-1-1967 ------------------------------------------------------------------------------ Order is hereby placed with the abovenamed seller for the articles or services described below, to be furnished to -----------------------------At----------------------------------------------- ------------------------------------------------------------------------------------ Item Articles or Services Quantity Unit Price Amount No. ------------------------ Cost Per ------------------------------------------------------------------------------------ Rs. Rental for 6, Padmini 31,500.00 Enclave, New Delhi for period June 1, 1967--- February 29, 1968 : Less amount withheld : 3,000.00 ------------ 28,500.00 --------------------------------------------------------------------------------------- (Signature of....
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.... assessee's paper book are copies of Court decrees in suit No. 102/83 pending in the Court of Shri Mahender Pal, learned Additional Distt. Judge,Delhi. Pages 11, 12 and 13 of the assessee's paper book are copies of preliminary decree and statement of Shri Davinder Sain, the counsel for Miss Reva Bhandari, and both these documents make it amply clear that there is an admission on the part of Miss Reva Bhandari to share the rental income with Miss Abha Bhandari. Now an admission is a statement, oral or documentary, which suggests any inference as to any fact in issue or relevant fact and which is made by any of the persons, under the given circumstances, including proceedings in a court of law and what is admitted by a party to be true must be presumed to be true unless the contrary is shown. With the above documents on the file, the factual position reflected by the material on record is that the rentals of the property, the subject-matter of appeal is to be shared by Miss Abha Bhandari and Miss Reva Bhandari, both having 50 per cent share each. The effect of an admission is that it places the burden of proof on the party making the admission and once the admission is there it carri....