COMMISSIONER OF INCOME TAX Vs. D.K. GARG

JUDGEMENT

(1.) This appeal by the Revenue under section 260A of the Income Tax Act, 1961 ('Act') is against an order dated 12th February, 2004 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 4514/Del/2003 for the Assessment Year ('AY') 1995-96. Question of law

(2.) While admitting this appeal on 28th November, 2008, the following question of law was framed:

(3.) The Respondent/Assessee is a Chartered Accountant. For the AY in question, he filed his return of income on 10th October, 1996 declaring his taxable income at Rs. 49,880 which comprised his gross professional receipts of Rs. 1,91,050. The Assessing Officer ('AO') noted that the Assessee was holding two current accounts in the Union Bank of India, Karol Bagh, wherein sufficient cash and cheque deposits were made during the relevant period. It was also noted that the Assessee had floated one company viz., M/s Prem Chand Plantation Private Limited and purchased two other companies viz., M/s Anuradha Pharmaceuticals Pvt. Ltd. and M/s Sai Fisheries Pvt. Ltd. The AO further noted that the said three companies and other two companies viz., Zamindar Plantation Pvt. Ltd. and Kisan Plantation Pvt. Ltd. were all sold to M/s James Group.