COMMISSIONER OF INCOME TAX Vs. S M AGGARWAL

JUDGEMENT

(1.) Revenue has preferred the present appeal under Section 260A of the Income Tax Act (hereinafter referred as Act) against the order dated 23rd September, 2005 passed by Income Tax Appellate Tribunal, Delhi (hereinafter referred to as Tribunal) in ITA No.116/Del/2001 relating to block period 1st April, 1988 to 21st April, 1998.

(2.) Vide the impugned order, the Tribunal has deleted the addition of Rs.26.05 lacs made on account of unexplained loans advanced by the Assessee and the interest earned thereon.

(3.) The facts in brief are that the residence of the Assessee at K-101, Hauz Khas Enclave, New Delhi, was searched under Section 132 of the Act on 21st April, 1998. During the course of search, certain documents containing details of certain monetary transactions such as advancement of loan of Rs.22.50 lacs by the Assessee and also income by way of interest thereof at Rs.3.55 lacs were found. The Assessing Officer vide questionnaire dated 27th January, 2000 required the Assessee to explain the expenditure. The explanation given by the Assessee that the account belongs to his daughter Smt.Sarla Gupta was denied by her. The Assessing Officer concluded in his assessment order that the Assessee had earned income from undisclosed sources which was circulated by way of loan for the purpose of earning interest. Thus, the amount of Rs. 22.5 lacs and interest of Rs.3.5 lacs were added to the income of the Assessee for the assessment year 1998-99.