COMMISSIONER OF INCOME TAX Vs. RAJ KUMAR

JUDGEMENT

(1.) THIS is an appeal preferred by the Revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the "Act') against the judgment dated 09.03.2007 passed by the Income Tax Appellate Tribunal (hereinafter referred to as the "Tribunal') in ITA No. 4125/Del/1999 in respect of assessment year 1996 -97. The Revenue is aggrieved by virtue of the fact that by the impugned judgment the Tribunal has deleted an addition in the sum of Rs 12,28,517/ - made by the Assessing Officer under Section 2(22)(e) of the Act.

(2.) AT the time of admission of the appeal we had heard the matter extensively. By our order dated 22.04.2009 we admitted the appeal on the substantial question of law set out hereinbelow and had with the consent of counsel appearing for both parties heard the submissions with a view to finally adjudicate upon the same. The substantial question of law on which the appeal was admitted is as follows:

(3.) THE assessee being aggrieved preferred an appeal before the Commissioner of Income Tax (Appeals) [hereinafter referred to as "CIT(A)']. The CIT(A) after examining the matter in great detail reversed the order of the Assessing Officer. The CIT(A) while doing so returned the following findings of fact: