COMMISSIONER OF INCOME TAX Vs. RAJESH KUMAR

JUDGEMENT

(1.) THE Revenue is aggrieved by an order dt. 22nd Sept., 2006 passed by the Income Tax Appellate Tribunal, Delhi Bench 'D', New Delhi (the Tribunal') in ITA No. 5425/Del/2004 relevant for the asst. yr. 1996 -97.

(2.) THE present appeal has arisen out of reassessment proceedings. The reopening is not under challenge because that was decided in favour of the Revenue. The dispute is on the merits of the controversy that is concerning an addition of Rs. 4,89,325 made under Section 69 of the IT Act, 1961 (the 'Act') as income from undisclosed sources.

(3.) THE AO was of the view that the earning of capital gains through the sale of shares was not genuine. He based his view on a report received from Dy. Director of IT (Inv.), Gurgaon [DDIT (Inv.)] to the effect that the assessee had taken a cheque/draft for an amount of Rs. 4,89,325 from one Shankar Hari Maheshwari out of his bank account No. 8327 drawn on Punjab National Bank, Karol Bagh, New Delhi.