COMMISSIONER OF INCOME TAX Vs. VALLAMJI RAVJIBHAI PATEL

JUDGEMENT

(1.) By way of this appeal, the appellant ­ Department has challenged the order dated 27/04/2016 passed by the ITAT in IT (SS) NO.37/RJT/2005 whereby the appeal of the Department came to be dismissed.

(2.) The short facts of the case are that a search operation under Section 132 of the Income Tax Act was carried out on 24/09/2002 at the residential and business premises of the assessee as well as at the business premises of Ajanta Group. During the search proceedings, it was found that the respondent had received a sum in various names of family members on retirement from various firms of Ajanta Group. The respondent was confronted and based on the statement given, the documentary evidence seized during the search and the statement of the other family members, the AO worked out the unaccounted interest received by the Vallamji Group and the proportionate share of respondent was worked out, which was treated as unaccounted income for the Assessment year 20032004. The matter was carried before the CIT (A) which had upheld findings of the AO and dismissed the appeal of the assessee. Thereafter, the matter was carried before the ITAT by assessee and the Tribunal deleted the addition holding that the claim of the respondent has been denied by other group as neither being paid nor received by the respondent relying upon the case of the another assessee, which has given rise to this appeal.

(3.) While admitting this appeal, following question was framed for consideration of this Court: