COMMISSIONER OF INCOME TAX Vs. DURABLE PROPERTIES

JUDGEMENT

(1.) The present appeal has been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "Act, 1961") challenging the order dated 24th April, 2009 passed by the Income Tax Appellate Tribunal (for brevity "Tribunal") in ITA No. 560/Del/2009 for the Assessment Year 2003-2004.

(2.) Mr. N.P. Sahni, learned counsel for the Revenue submitted that the Tribunal had erred in law in deleting the addition of ` 30 lacs made by the Assessing Officer (in short "AO") under Section 68 of Act, 1961 even though the creditor was not traceable at the address provided by the respondent-assessee. He laid emphasis on the fact that respondent- assessee had even failed to produce the creditor for examination despite number of opportunities afforded to it.

(3.) However, upon a perusal of the file, we find that the said addition was deleted by the Commissioner of Income Tax (Appeals) [for short "CIT(A)] and the Tribunal on the ground that the aforesaid addition was actually an advance of ` 30 lacs under an Agreement to Sell which had been forfeited by the respondent-assessee. It is pertinent to mention that the said Agreement to Sell had been executed between the respondent-assessee and a company M/s. Fair N. Square which was registered not only with the Registrar of Companies but also had a Permanent Account number. In fact, the Tribunal in its impugned order has observed as under :-