DARSHANA AGGARWAL Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) THE short question which arises for decision in this writ petition is whether the Tax Recovery Officer while exercising powers under Rule 11 of the Second Schedule to the Income Tax Act, 1961 (hereinafter referred to as the Act), is entitled to determine the question whether a sale transaction made in favour of the petitioner is a Benami transaction or not?

(2.) THE facts necessary for decision of the case are that on 14.2.1992 the house of the petitioner was searched by the Income Tax authorities and cash amounting to Rs. 1,56,875/- was seized. The petitioner thereafter filed a return showing the income of Rs.30,600/- for the relevant year. An amount of Rs. 1,56,875/- being the amount seized was added to the income of the petitioner on protective basis. According to the revenue, Shyam Sunder Aggarwal husband of the petitioner had alleged in his statement that this amount belongs to his wife. However, later, it was found that the petitioner is only a housewife, having no independent source of income and this amount of Rs.156,875/- was deleted from the income of the petitioner and added to the income of her husband Shyam Sunder Aggarwal. On the basis of such assessment made, according to the revenue, an amount of Rs.43,89,705/- was recoverable from Shyam Sunder Aggarwal husband of the petitioner. Interest was also payable on this amount in terms of Section 220(2) of the Act. At the time of the filing of the reply to the writ petition, this amount had swelled to Rs.84,86,942/-.

(3.) THESE properties in the revenue record stand in the name of the petitioner Smt. Darshana Aggarwal, wife of the defaulter Shyam Sunder Aggarwal. The property comprising of house Nos. 183, 183A to 183D is a three storeyed building which was purchased by the petitioner on 16.8.1985 from S/Shri Jagdish Chander, Harish Chander, Ramesh Chander and Smt Rampati Gupta for a sum of Rs. 30,000/- vide sale deed , copy of which has been filed as Annexure PC to the writ petition. The property forming house Nos. 160, 160A and 160B was purchased by the petitioner in a public auction which was confirmed by the Chief Judicial Magistrate, Solan for a sum of Rs. 22,110/- and mutation thereof has been sanctioned in the name of the petitioner.