COMMISSIONER OF INCOME-TAX Vs. BASANT PODDAR

JUDGEMENT

(1.) The assessee filed the return of income for the assessment year 2004-2005 on 28.10.2004, declaring the total income of Rs.3,85,250/-. The same was processed under Section-143(1) of the Income tax Act (for short 'Act'). The assessee is also the Managing Director of M/s.Mineral Enterprises Limited (for short 'MEL'). The assessee was holding 74.84% shares and his wife, viz., Mrs.Vandana Poddar was holding 15.08% shares, along with other family members. The company was being managed and administered by the assessee-Basant Poddar.

(2.) A search action under Section-132 of the Act was initiated against the assessee on 22.07.2005. During the course of the search proceedings, several books of accounts and incriminating documents were found which were seized. Consequent to the search, a Notice under Section-153A of the Act was issued on 07.02.2006. In response, the assessee filed a return of income on 20.02.2006, declaring the said income at Rs.3,85,250/-, as per the originally returned income. Subsequently, a Notice dated 15.03.2007, under Section-143(2) of the Act, was issued to the assessee. Thereafter, Notices under Section- 142(1) of the Act along with questionnaires were issued to the assessee on various occasions.

(3.) While going through the seized books of accounts and documents, it was found that the assessee had paid a sum of Rs.11 Crores as on 24.05.2004 to his wife Smt.Vadana Poddar, apparently, on a personal commitment to her. The same was indicated as 'gift from Sri.Basant Poddar' to his wife, in a sum of Rs.25 Crores, which constituted Rs.11 Crores already paid, Rs.6 Crores to be paid before 10.06.2004 and Rs.8 Crores to be paid between July-August'2004, along with certain other commitments. The same was signed by the assessee as well as his wife, which was witnessed by Sri.S.Badrinarayan.