COMMISSIONER OF INCOME TAX Vs. BYYANNA HUF

JUDGEMENT

(1.) This appeal by the Revenue is arising out of the impugned order dated 10th October 2008 passed in ITA No. 1016/Bang/2007 by the Income Tax Appellate Tribunal, Bangalore, for considering the following questions of law:

(2.) The facts of the case in brief are, the assessee is an Undivided Hindu Family and partner in M/s. Jayanth Service Station, Chikkaballapur, authorised dealers in Petroleum Products for M/s. Indian Oil Corporation. The said firm came into existence on 5.1.2001. Be that as it may. There was a survey action on the Firm under Section 133A of the Income Tax Act on 10.10.2002. At that time, neither the assessee nor the partnership has been assessed to Income tax. During the survey proceedings, a receipt dated 1.2.2000 was found showing the payment of Rs. 30 lakhs by the assessee. Taking this aspect of the matter, the Assessing Officer has initiated the proceedings by issuing notices under Section 142(1) calling upon the assessee to file returns for the assessment year 2000-2001 and 2001-2002. In response to the said notice, assessee appeared through his representative and filed his returns. The explanation offered by the assessee in respect of Rs. 30 lakhs has not been accepted by the Assessing Officer and he has proceeded to pass the order of assessment treating a sum of rs. 30 lakhs as unexplained investment Under Section 69 and brought the same to tax as income of the assessee by his order dated 31.3.2006. Assailing the correctness of the said order, the assessee had filed an appeal before the First Appellate Authority- the Commissioner of Income Tax (Appeals)- IV, Bangalore, in No. ITA -2/Kolar-CIT (A)-IV/2006-07. The First Appellate Authority, after hearing both sides and after considering the report submitted by the Assessing Officer and other relevant materials available on file, has allowed the said appeal by deleting the addition of Rs. 30 Lakhs. Being aggrieved by the order of the First Appellate Authority, the revenue has filed an appeal before the Income Tax Appellate Tribunal, Bangalore Bench-B, Bangalore, (Tribunal' for short) in ITA No. 1016/BANG/2007. The said matter came up for consideration before the Tribunal. The Tribunal, in turn, after going through the orders gassed by the authorities below, has dismissed the appeal and confirmed the order passed by the First Appellate Authority. Being aggrieved by the order passed by the Tribunal, the revenue herein has presented this appeal, raising the aforesaid substantial questions of law along with other reliefs.

(3.) We have heard the learned Counsel for the appellants Sri. K.V. Aravind at considerable length of time.