COMMISSIONER OF INCOME TAX Vs. HOTEL SAKLANI

JUDGEMENT

(1.) THIS appeal, preferred under Section 260A of IT Act, 1961, is directed against the impugned order dt. 22nd Feb., 2005 passed in Misc. Appln. No. 7/Delhi/2005 by Tribunal, Delhi Bench 'C', New Delhi.

(2.) HEARD learned Counsel for the parties.

(3.) BRIEF facts of the case are that assessee/respondent -M/s Hotel Saklani, 17, Rajpur Road, Dehradun, was served with the notice under Section 148 of the Income -Tax Act, 1961 (hereinafter to be referred as the Act) by the AO in the year 1993. In response to said notice assessee submitted its return showing his income as Nil the matter pertains to the assessment year of 1987 -88. During that year assessee had shown an investment of Rs. 9,70,603 for construction of basement and shops in his hotel. Valuation of the property known as 'Hotel Saklani' was shown in the return as Rs. 32,74,151. The AO vide his order dt. 28th March, 1995 assessed the investment after hearing the assessee at Rs. 10,70,604. In other words, difference in the valuation was assessed at Rs. 1,00,000 only. The assessee challenged the assessment order before Commissioner of Income -Tax (Appeals), Dehradun [hereinafter to be referred as CIT(A)]. Said appeal was registered as appeal No. 92/Ddn/1995 -96 and dismissed vide order dt. 10th Jan., 2001 by CIT(A). On further appeal before Income -tax Appellate Tribunal (hereinafter to be referred as Tribunal), filed by the assessee, the appeal was allowed vide order dt. 22nd March, 2004.