KIRAN LATA Vs. INCOME TAX APPELLATE TRIBUNAL

JUDGEMENT

(1.) THIS appeal, preferred under Section 260 A of Income Tax Act, 1961, is directed against the judgment and order dated 19.10.2007, passed by Income Tax Appellate Tribunal (Delhi Bench 'H': New Delhi) in Income Tax Appeal No. 4081/Del./2006 (Assessment Year: 2002 -2003).

(2.) HEARD learned Counsel for the parties and perused the relevant papers on record.

(3.) BRIEF facts of the case are that appellant/assessee (status individual) submitted her return of income for the assessment year 2002 -2003 on 31.10.2002 to the Income Tax Officer, Almora, declaring therein total income as Rs. 2,68,760/ -. The return was processed under Section 143(1) of the Income Tax Act, 1961. However, the case was selected for scrutiny, after receiving the approval from the Commissioner of Income Tax, Haldwani, and thereafter a notice under Section 143(2) of the Act was issued on 13.12.2002 to the Assessee. The assessee's main source of income is her medical profession by running a nursing home. Professional activities were being carried in a newly constructed building in Ranikhet. The assessee has shown investment in the building at Rs. 26.99 lakh. The Assessing Officer (herein after referred as A.O.) found that the claim of investment is not supported with sufficient proof. The value of the building was then got assessed by the Income Tax Department through departmental Valuation Officer on 24.01.2005, on reference made under Section 142(A) of the Act. As per the valuation report, estimated investment in the construction of building was Rs. 46,57,430/ -. As such, difference between value shown by the assessee and by the Valuation Officer came out to be more than Rs. 19 lakh. The objections filed by the assessee against the valuation report were considered by the Assessing Officer, who added Rs. 19,57,092/ - to the income of the assessee treating said amount as additional investment made in the construction of the building from undisclosed source under Section 69 of the Act, as such, the total income was assessed by the Assessing Officer at Rs. 23,25,850/ -. Against said assessment order dated 22.03.2005, the assessee preferred appeal No. 32/ALM/2005 -06 before Commissioner, Income Tax (Appeal II), Dehradun, who after hearing the parties, vide his order dated 14.09.2006, dismissed the appeal. Thereafter assessee went in appeal before the Income Tax Appellate Tribunal, who passed the impugned order, challenged in this appeal. In the impugned order, passed by Income Tax Appellate Tribunal, the appeal was partly allowed and as to investment of Rs. 19,57,092/ - added by the A.O., it found addition of Rs. 10 lakh as correct assessment.