COMMISSIONER OF INCOME TAX Vs. HARJEEV AGGARWAL

JUDGEMENT

(1.) The Revenue has filed this appeal under Section 260A of the Income Tax Act, 1961 (hereafter the ,,Act) impugning an order dated 23rd June, 2003 (hereafter ,,the impugned order) passed by Income Tax Appellate Tribunal (hereafter ,,the ITAT) in IT(SS) No.68/Del/2002 filed by the Assessee. This appeal was directed against an order dated 13th February, 2002 passed by the Commissioner of Income Tax (Appeals) [hereafter ,,the CIT(A)] in an appeal preferred by the Assessee against the assessment order dated 27th February, 2001 passed by the Assessing Officer (hereafter ,,the AO) for the Block Period 1st April, 1988 to 25th February, 1999.

(2.) The controversy involved in the present appeal relates to an addition of Rs.74 lacs made by the AO as undisclosed income of the Assessee. Admittedly, the said payment of Rs.74 lacs was made in cash for purchasing a property. The ITAT, in its order, has held that the AO had not made out any valid case for treating the investment as the undisclosed income of the Assessee for the block period. The ITAT further held that the addition on account of unexplained income, if any, had to be considered in the regular assessment on the basis of books of accounts and the return filed by the Assessee and there was no justification for considering the investment in the block assessment under Chapter XIV -B of the Act. This is contested by the Revenue.

(3.) By an order dated 19th February, 2007 the following substantial questions of law were framed for consideration: -