D.C.I.T. Vs. AJEET SINGH KARAN

JUDGEMENT

(1.) THIS appeal at the instance of the Revenue is directed against the order of the CIT(A)'s order dated 13.10.2009. The relevant assessment year is 2005 -06.

(2.) THE solitary ground raised reads as follows: - -

(3.) THE assessee is an individual. He is earning income from salary. For the relevant assessment year, return of income was filed declaring an income of Rs. 98,56,088/ -. The assessee had received as gift a sum of Rs. 3.00 crores from Madan Lal Arya (Donor) vide Cheque No. 712656 dated 21.08.2004 drawn on ICICI Bank, New Delhi. The said gift was characterized as part of the capital of the assessee and reflected in the capital account annexed to the balance sheet filed by the assessee, along with the return of income. The assessment was selected for scrutiny by issuance of notice u/s. 143(2) of the Act. The Assessing Officer, during the course of scrutiny assessment, issued summon to the Donor. The donor, through his representative, complied with the notice issued by the Assessing Officer and furnished the information sought for by the Assessing Officer from time to time. However, assessment was concluded by the order dated 26.12.2007, wherein gift received by the assessee from Shri Madan Lal Arya was treated as bogus and added to the total income of the assessee.