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[2007] 294 ITR 168 [2007] 164 TAXMAN 170 (PUNJ. & HAR.) HIGH COURT OF PUNJAB AND HARYANA Avinash Gupta v. Commissioner of Income-tax* M.M. KUMAR AND AJAY KUMAR MITTAL, JJ. IT APPEAL NO. 586 OF 2006 JULY 10, 2007 Section 69 of the Income-tax Act, 1961 - Unexplained investment - Block period 1-4-1987 to 4-2-1998 - During search conducted at premises of assessee, it was noted that certain bank accounts were opened in name of relatives of assessee for encashing FDRs - Assessing Officer treated said accounts in names of assessee and added amounts deposited in said accounts as undisclosed income of assessee - Accounts had been operated by assessee himself - Some of relatives did not even have any knowledge of deposits having been made by assessee in their bank accounts and some other relatives were not even aware of accounts having been opened in their names and no evidence was produced by him either before Assessing Officer or Tribunal to rebut those findings - Whether Assessing Officer was justified in making addition - Held, yes FACTS During the search operation conducted at the office premises of the assessee, the Assessing Officer noted that certain bank accounts were opened in the names of relatives of the assessee for encashing benami FDRs, which were being operated by the assessee. The Assessing Officer treated the said accounts in the names of the assessee and added amounts deposited in said accounts as undisclosed income of the assessee. On appeal, the Commissioner (Appeals) upheld the order of the Assessing Officer. On second appeal, the Tribunal confirmed the order of Commissioner (Appeals). On appeal : HELD The Commissioner (Appeals) as well as the Tribunal had disclosed various reasons in their orders to treat the deposits in the various bank accounts as his undisclosed income assessable in the hands of the assessee. [Para 7] The findings recorded by the Commissioner (Appeals) and the Tribunal were that some of the relatives did not even have any knowledge of the deposits having been made by the assessee in their bank accounts and some other relatives were not even aware of accounts having been opened in their names. Significantly, the accounts had…

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