COMMISSIONER OF INCOME TAX Vs. NAVEEN GERA

JUDGEMENT

(1.) The present appeal has been filed under Section 260A of Income Tax Act, 1961 (for brevity "Act, 1961") challenging the order dated 11-9-2009 passed by the Income Tax Appellate Tribunal (in short "Tribunal") in ITA. No. 66/Del/2001, for the block period 1-4-1988 to 20-8-1998.

(2.) Briefly stated the relevant facts of the case are that the Respondent-Assessee had made investment in two plots of agricultural land in December, 1996. The investment in the farm houses were made by the Assessee in the name of his father, namely, Mr. L.D. Gera for a total consideration of Rs. 41,35,700/-. The abovesaid properties were brought from Sam Aviation(P) Ltd. of which the Assessee was one of the Directors. It is an admitted fact that the sources and the investment made thereof in these two plots had been declared by the Respondent-Assessee under Voluntary Disclosure of Income Scheme, 1997 (for short "VDIS"). On 20-8-1998, a search and seizure under Section 132 of Act, 1961 was carried out at both the Respondent-Assessess residential and business premises. The sale deeds of the abovesaid properties were found during the search.

(3.) The Assessee Officer (in short "assessing officer") referred the properties for valuation to the District Valuation Officer (in short "DVO") alleging that Respondent-Assessee had invested huge amount in the purchase of the farm house over and above the investment disclosed in VDIS. On the basis of the DV Os report, the assessing officer made an addition of Rs. 2,24,08,820/-.