Is beneficiary or owner of Asset liable for income tax

Dear Sirs,

An individual "A" files a case for misappropiation of Assets in financial year under section 405 & 406 IPC for recovery of goods against "B, C, D & E".

The individual "A" also files a list of assets which have been misappropraited by group of persons "B, C, D & E" in two calender days.

The group of persons "B, C, D & E" get anticipatory bail in court after several months by making some payment towards the List of Assets that "A" says has been taken by them from her.

Later on totalling the value of items which are mostly jewellery, cash and clothes the total comes to approx Rs32/- lakhs to 40/- lakhs.

The group of persons approach the income tax department at Delhi and in Aprill 2008 file complaint with CIT - VIII [Ward - 24(3)] at Income Tax department with request for enquiry , investigation and recovery of income tax from "A" or find out the source of income for same.

In June 2008 CIT - VIII [Ward 24 (3)] transfers the case for enquiry and investigation to CIT - XVI [ward-46(4) & ward-47(3)] later on ward-47(3) again transfers it for enqury and investigation to ward-46(3).

Now the income tax officers keep on denying me any information regarding my complaint for the recovery of taxes or souce of income. They only keep informing that enquiry and investrigation are in progress. Fnally on the orders of the Centrral Information Commission the Joint Commissioner of Income Tax - Range 46 in febuary 2009 releases information that "A" and her parents let us call them "X' have not filed any income tax return since 2002 and steps have been iniated for enquiry, investigation and recovery of taxes.

Then the Income Tax officer of ward 46(4) kept on saying that he can not tax "A" since she says that the entire assets worth between 32/- to 40/- lakhs have been gifted by her parents "X' so ITO says “A” is not liable for tax as per her statement. The Income Tax officer of ward 46(3) says that "X" says that how can he be liable for the statement given by "A" regarding the soucrce of funds for her assets so the ITO says “X” is not liable for any income tax.

When I approached the Central Information Commission again since the income tax officers were not releasing any more information by showing be signed letters of "A" & "X" who said that no information to be released regarding there assets. Then in 2010 the case was again transferred back to CIT - VIII [Ward - 24(3)] for enquiry, investigation and recovery of taxes.

After continous follow up the Income tax officer -24(3) informed me that he has received a letter from "A" which states that her educational qualification is that of a post graduate, she has no income since 2007 and that all the assets were gifted to her by "X". Based on this letter income tax officer - 24(3) says that she is not liable for any taxes and is again transferring the case back to CIT - XVI [ward-46(4) & ward-47(3)].

So then now the whole merry go round process will start again. Court is putting pressure on "B, C, D & E" to make payments for assets of "A" which she says have been misappropriated by them.

Kindly tell how to expose that "A" is making false claims of asets or inform how to get income tax authorities at Delhi to make enquiry, investigation and recovery of Income tax with penalties.

If any one has any case citations or relevant sections of law ... please do advice.

thnx & regards

Income tax department deals matters of "income" not of assets,

the steps of incometax department is appropriate and apprieciated.

you are joining court case of 405 and 406 IPC with incometax, to get relief in court, which is unwanted.

if B,C D E has taken the jewellary of A then they have to return her on good deeds, without any litigation, or compensate her, and if they did not , then face the court and establish that they have not taken jewellary of her.

misuse of govt machinery for personal benefit is highly unwanted. if you can prove that A has escaped the income or capital gains in previous years, or you can prove that such jewellary is purchased by A in preceeding years on which tax is not paid ........( rem you have to prove that same is purchased), then CIT will consider the case.