COMMISSIONER OF INCOME TAX, DELHI Vs. SUDHIR BUDHRAJA

JUDGEMENT

(1.) This is the Revenue's appeal under Section 260A of the Income Tax Act, 1961 (hereafter the 'Act'), against an order dated 30th July, 2002 passed by the Income Tax Appellate Tribunal (hereafter 'Tribunal') in ITA No. 1124/Del/2001. The aforesaid appeal (ITA No. 1124/Del/2001) was preferred by the Assessee impugning an order dated 12th March, 2001 passed by the Commissioner Income Tax (Appeals) [hereafter 'CIT(A)'] rejecting the Assessee's appeal against an assessment order dated 27th March, 1998 passed by the Assessing Officer (hereafter 'AO') in respect of Assessment Year 1995-96.

(2.) The principal controversy involved in the present appeal relates to an addition of Rs. 1,87,38,100/- made by the AO to the taxable income of the Assessee under Sections 68 and 69 of the Act. This addition was made as the AO held that the Assessee had been unable to establish his claim that a sum of US $ 6 lacs received by him was a gift. The Assessee's appeal to the CIT(A) against the said decision was also rejected. On a further appeal, the Tribunal held that the Assessee had established the source of the gift as well as the creditworthiness of the donor and, accordingly, deleted the addition. Aggrieved by the aforesaid decision, the Revenue has preferred the present appeal.

(3.) The present appeal was admitted on 5th March, 2004 and the following questions of law were framed for determination by the Court:-