CIT Vs. NARINDER KR. BUDHIRAJA

JUDGEMENT

(1.) The present appeals have been filed on behalf of the Revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the 'Act'). In ITA 1095/2011, the Revenue has impugned a common order dated 11.03.2011 passed by the ITAT (hereinafter referred to as the "Tribunal") in ITA No. 1409/Del/2009 and ITA No. 2112/Del/2009. By way of ITA No. 444/2012, the Revenue has assailed the decision of the Tribunal dated 23.03.2012 whereby its appeal against an order dated 08.06.2011 passed by CIT (Appeals) setting aside a penalty of Rs. 18,52,435/- imposed by the Assessing Officer under Section 271(1)(c) of the Act, had been rejected. Both the appeals relate to the Assessment Year 2005-06 and the same have been taken up for hearing together.

(2.) The controversy in the present appeals relate to an addition of deemed income of Rs. 55,00,000/- under Section 69B of the Act as unexplained investment and levy of penalty as a consequence thereof.

(3.) Briefly stated, the relevant facts of the case are as under:-