COMMISSIONER OF INCOME TAX Vs. ASHOK KHETRAPAL

JUDGEMENT

(1.) THE issue involved in the present appeal is regarding deletion of an addition totaling Rs. 2,23,08,152/- made on the basis of the report of valuation cell of department of Revenue on account of unexplained investment in the properties of the assessed.

(2.) ON 17th November, 2000, a search and seizure operation under Section 132(1) of the Income Tax Act, 1961 (for short as 'Act') was conducted in the case of M/s. Pashupatinath Jee Tours and Travels at its business and residential premises of its partners and their relatives. The assessed is a partner of this firm and during the course of search of his residence B-174, East of Kailash, New Delhi, some papers of properties in which assessed had made investments were found. The Assessing Officer made a reference to the Valuation Officer and treated the difference between the valuation as per Departmental Valuation Officer's report and the declared value of the properties as assessed's undisclosed income for the assessment year 1999-2000 and the period 1st April, 2000 to 17th November, 2000.

(3.) THE Revenue challenged the order of [CIT (A)] before the Income Tax Appellate Tribunal (for short as 'Tribunal') and vide its impugned order dated 21st August, 2006, the Tribunal dismissed the appeal holding that in the absence of any adverse material found during the course of search, no addition can be made by treating the investment as undisclosed.