TaxTMI 
TaxTMI 
1980 (7) TMI 141
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....24) Unmarried Anil Kumar(20) Unmarried Suresh Ku.(29) married Satish Ku. (24) married Sunil Ku. (21) Unmarried Sudhir Ku. (15) Unmarried Gendram and Santram had partitioned din 1968. Thereafter, Ramesh Kumar s/o Gendram and Suresh Kumar s/o Santram had set up a business in 1968 in the purchase and sale of silver ornaments. This business was assessed in the status of Association of Persons. A scrutiny of the books of account and copies of the account filed for the earlier years revealed to the ITO that there was a joint account of Shri Ramesh Kumar and Suresh Kumar the credit balance in which account including profits amounted to Rs. 49,541. This amount was transferred on the first day of the accounting year namely 27th Oct., 1973 to t....
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....and Santram were also carrying on business of money lending as Association of Persons and they were being assessed by the ITO, A-Ward, Bilaspur. The ITO, made the present assessment, therefore, on protective basis and the income was assessable in the hands of Gendram and Santram as an AOP. 3. The assessee appealed before the AAC against this decision of the ITO. The AAC was of the opinion that the ITO was justified in treating the present business as the benami business of Gendram and Santram. For arriving at his conclusion he laid great stress on the fact that the whole capital in the books of the business amounting to Rs. 49,541 had been transferred to the account of Gendram and Santram. 4. The assessee has, therefore, filed the present....
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....f the amount of Rs. 49,541 to the account of Gendram and Santram. 5. We have carefully considered these facts of the case and the submissions on either side. No doubt the final dealings between Ramesh Kumar and Sureshkumar on one side and Gendram and Santram on other side are in a chaotic condition. It is impossible to arrive at any clear finding on the basis of these entries as to the relation between Rameshkumar and Sureshkumar on the one side and Gendram and Santran on the other side. At the same time we are unable to make out what exactly is the stand of the Revenue in this respect. According to the orders of the authorities below there was no partition of the family and how Gendram and Santram came to form an Association of Persons? H....
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....n explanation together with the sale vouchers of the agrl. Produce and copies of the Khasaras from the Patwaris were filed before the ITO. It was sated that the average income per acre worked out to Rs. 1,400 per year from the year 1968 when the partition had taken place. It was the assessee's plea that in respect of certain assessments the income per acre was accepted by the Dept. at Rs. 2,000 per acre in this particular area. However, the ITO declined to accept this explanation. He held that in the absence of any evidence in respect of the agrl. and house-hold expenses and in view of the detailed facts mentioned by him in his assessment order that the assessee's explanation with the entire deposits of Rs. 21,000 in the name of Gendram and....