CHARANJIT GROVER Vs. ASSISTANT COMMISSIONER OF INCOME TAX.

JUDGEMENT

(1.) THIS is an assessed's second appeal arising out of his assessment for assessment year 1985 -86 and the only ground raised is about an addition of Rs. 2,70,000 in respect of unexplained investment in the purchase of an imported Toyota Corolla car No. DIC - 579.

(2.) WE have heard the learned counsel for the assessed and the learned Departmental Representative and have perused the material place before us.

(3.) ON the 5th March, 1986 there was a search at the residential premises of the assessed and the car in question was one of the four cars which were found in possession and control of the assessed and parked at his residence at 4, Ram Kishore Road, Delhi, According to the ITO the assessed had purchased this car from one Smt. Madhu Sethi and paid Rs. 2,70,000 as the price. On the other hand, the assessed's contention is that he had merely borrowed the car for going to a trip to Hardware and the car had been so borrowed by him only a day or two before the search. At the hearing before us the learned counsel for the assessed stressed that the car had not been purchased by the assessed and no investment was made in this connection and hence the addition could not have been made. On the other hand, the learned Departmental Representative contended that the payment of Rs. 2,70,000 had actually been made by the assessed to Smt. Madhu Sethi for the acquisition of the car and although the car was not yet registered in the name of the assessed for legal reasons, the assessed having made the investment, the sources of which the assessed failed to explain, the addition was properly made. Now admitted by the car was found parked at the residence of the assessed and the key and relevant papers in connection with the car were all in his possession. Therefore, the assessed admits that at the time of the search the car was in his possession and control. The Officer, who led the search party, examined the assessed at 10.00 A. M. on 5 -3 -1986, the date of the search and asked several question about the car and the following are the questions put to him and the answers given by him : -