| Case ID |
ffd12b97-43dd-4225-a9f1-4c3fe56a11f2 |
| Body |
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| Case Number |
I.T.A. No. 3450 of 1973-74 |
| Decision Date |
Sep 26, 1974 |
| Hearing Date |
|
| Decision |
The Income Tax Appellate Tribunal found that the appellant, Mr. M., was involved in a benami transaction where his son and daughter were considered mere name-lenders. The Tribunal upheld the Income Tax Officer's assessment of the appellant's income from real estate business, confirming the profits as taxable income. However, the Tribunal disagreed with the Income Tax Officer's clubbing of the son's and daughter's income with the appellant's, deeming it unsustainable. |
| Summary |
In a landmark decision by the Income Tax Appellate Tribunal, the case revolved around the benami transaction involving Mr. M., who was assessed for income derived from real estate business. The Tribunal considered the systematic activities of converting agricultural land into residential areas, establishing it as a business activity subject to taxation under the Income Tax Act, 1922. Despite the Income Tax Officer's assertion that Mr. M.'s son and daughter were mere name-lenders, the Tribunal found insufficient evidence to support the clubbing of their income with Mr. M.'s. The decision highlighted the burden of proof on the department to establish benami transactions and clarified the criteria for business activity in real estate. This case is a significant reference for understanding the complexities of benami transactions and real estate business under the Income Tax Act. |
| Court |
Income Tax Appellate Tribunal
|
| Entities Involved |
M. T. SIDDIQUI,
M. M. AKBAR,
S. M. Raza Naqvi,
Ashfaque Ahmad,
M.,
A.,
T. Begum,
S. Begum
|
| Judges |
M. T. SIDDIQUI, PRESIDENT,
M. M. AKBAR, ACCOUNTANT MEMBER
|
| Lawyers |
S. M. Raza Naqvi,
Ashfaque Ahmad
|
| Petitioners |
Not available
|
| Respondents |
Not available
|
| Citations |
1975 SLD 375,
1975 PTD 18,
(1975) 31 TAX 23
|
| Other Citations |
Not available
|
| Laws Involved |
Income Tax Act, 1922
|
| Sections |
9,
16(3),
10
|