CIT Vs. TILAK RAJ ANAND

JUDGEMENT

(1.) In these appeals, the Revenue is aggrieved by a common order of the Income Tax Appellate Tribunal (ITAT) dated 03.12.2010 in IT (SS) A No.48/Del/2006 and IT (SS) A. NO./85/Del/2006. The ITAT had affirmed the findings of Commissioner of Income Tax (Appeals) [hereafter referred to as "CIT(A)"] in regard to certain amounts originally added in the course of block assessment proceedings by the Assessing Officer (AO).

(2.) The brief facts are that the assessee's premises were searched pursuant to which notice under Section 153A of the Income Tax Act, 1961 (hereafter referred to as "the Act") was issued. The assessee, in response, filed his block return declaring undisclosed income to the tune of R4 26,70,540/-. Notice in the course of these proceedings was issued and subsequently on 31.05.2005, the AO framed the assessment. This order included addition in respect of the sum of Rs. 107 lakhs under Section 69C of the Act pertaining to unexplained purchase of residential property. Other amounts too were added. The assessee's appeals were allowed in part in that an addition of Rs. 39,47,500/- under Section 69C and Rs. 5,00,000/- under Section 69 and a further sum of Rs. 30 lakhs towards unexplained expenditure was affirmed.

(3.) Both the Revenue and the assessee appealed. The Revenue's appeals were rejected by the impugned order, barring affirmation of a small amount of Rs. 6,93,000/- . The assessee's appeals were, however, allowed.