COMMISSIONER OF INCOME TAX Vs. GIAN GUPTA

JUDGEMENT

(1.) This appeal under Section 260A of the Income Tax Act, 1961 is directed against the order dated 16.12.2010 passed by the Income Tax Appellate Tribunal in ITA 2775/Del/2010 pertaining to the assessment year 2006-07.

(2.) The Assessing Officer had made an addition of Rs 1 crore on account of alleged unexplained investment in land at village Samalkha. The Assessing Officer had also made an addition of Rs 57 lacs on account of alleged unexplained investment in land at Udyog Vihar. Both these additions were deleted, in appeal by the assessee, by the Commissioner of Income Tax (Appeals). The said deletions have been confirmed by the Income Tax Appellate Tribunal by virtue of the impugned order dated 16.12.2010. The revenue, being aggrieved by the said decision, is before us by way of this appeal.

(3.) During survey operations conducted on 24.01.2006 a document (MoU) between Mr Gian Gupta (the assessee) and one Mrs Jind Singh, resident of C-34, Sujan Singh Park, New Delhi was found. The said MoU was in respect of land measuring 13 bighas and 5 biswas situated at village Samalkha. According to the said MoU, Mrs Jind Singh had agreed to sell the said property to the assessee for a total sum of Rs 10 crores. Out of the said sum of Rs 10 crores, a sum of Rs 2 crores was to be paid by way of earnest money. We may point out at this stage itself that the MoU was unsigned. Another document was impounded during the survey and that was an unsigned receipt indicating receipt of Rs 2 crores by Mrs Jind Singh. Rs 1 crore was said to have been received through cheque and the other Rs 1 crore by cash. Statements of the assessee were recorded on oath and questions were put to him. Question Nos. 10 and 11 are relevant for our purposes and they are reproduced herein below:-