| Case ID |
048a5181-ad6b-4dbf-b818-5dce60f7c8cf |
| Body |
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| Case Number |
Civil Writ Petition No. 1671 of 1973 |
| Decision Date |
Oct 28, 1986 |
| Hearing Date |
|
| Decision |
The case revolved around the attachment of property owned by the wife of the assessee, who was the respondent in this case. The Tax Recovery Officer had attached the property on the grounds that it was benami, meaning it was held by the wife on behalf of the husband. However, the court found no evidence to support this claim. The burden of proof rested on the Income Tax authorities to demonstrate that the property was indeed benami. Since the Tax Recovery Officer failed to provide such evidence, the court ruled that the property belonged to the wife and could not be attached for the husband's tax dues. Thus, the court allowed the petition, quashing the previous order of attachment. |
| Summary |
This case highlights the legal principles surrounding the attachment of property under the Income Tax Act, particularly in the context of benami transactions. The Delhi High Court examined the definition of benami and the burden of proof required to establish such claims. It emphasized that mere allegations are insufficient to justify the attachment of a property that is legally owned by another party. The ruling reinforced the importance of proper evidence in tax recovery cases, ensuring that individuals are not unjustly deprived of their assets without substantial proof. This decision serves as a precedent for similar future cases, clarifying the legal stance on property ownership and tax liabilities. Keywords: Income Tax Act, benami property, Delhi High Court, tax recovery, legal ownership, burden of proof. |
| Court |
Delhi High Court
|
| Entities Involved |
UNION OF INDIA,
BANK OF INDIA
|
| Judges |
SUNANDA BHANDARE, J
|
| Lawyers |
S.K. Dhoiakia with R.C. Bhatia for Petitioner,
K.K. Wadhera, R.C. Pandey for Respondents Nos. 3 and 4
|
| Petitioners |
BANK OF INDIA
|
| Respondents |
UNION OF INDIA and others
|
| Citations |
1989 SLD 44,
1989 PTD 326,
(1987) 56 TAX 127
|
| Other Citations |
Kapur Chand Shrimal v. T R O (1969) 721 T R 623
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
222(1)
|