| Case ID |
df8f582a-679d-4709-85df-b92c147703cc |
| Body |
View case body. Login to View |
| Case Number |
IT REFERENCE NO. 121 OF 1972 |
| Decision Date |
|
| Hearing Date |
|
| Decision |
The Tribunal ruled that the fixed deposit amounting to Rs. 2 lakhs, which was claimed by Sukhdayal Rambilas to belong to him, actually belonged to the assessee-firm. The court found that there was insufficient evidence to establish that the money had been earned by Sukhdayal Rambilas, and since the deposit was under the control of the firm, it was considered income from undisclosed sources. The decision emphasized the necessity of a clear nexus between the deposit and the alleged owner, which was not established in this case. Consequently, the Tribunal's order was restored, concluding that mere enjoyment of the overdraft facility did not equate to ownership of the funds. |
| Summary |
The case revolves around the assessment of a fixed deposit made by Sukhdayal Rambilas, which was claimed to be personal. The Bombay High Court addressed the implications of Benami transactions under Section 143 of the Income-tax Act, 1961. The court highlighted the importance of establishing a direct connection between the funds and the claimed owner. The ruling concluded that the funds in question belonged to the assessee-firm, not Sukhdayal Rambilas, reinforcing the legal principle that the burden of proof lies with the party asserting ownership. This case serves as a critical reference for understanding ownership in financial transactions and the complexities involved in Benami transactions. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
M.N. Chandurkar,
M.H. Kama
|
| Lawyers |
I.M. Munim,
S.J. Mehta,
R.J. Joshi,
R.L. Bhutani
|
| Petitioners |
Sukhdayal Rambilas
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1982 SLD 1094 = (1982) 136 ITR 414
|
| Other Citations |
CIT v. Daulat Ram Rawat Mull [1973] 87 ITR 349 (SC),
Mehta Parikh & Co. v. CIT [1956] 30 ITR 181 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
143
|