THE COMMISSIONER OF INCOME Vs. MUKESH M SHETH

JUDGEMENT

(1.) These appeals arise out of common judgment of the Income Tax Appellate Tribunal. They have been heard together and are being disposed of by this common judgment.

(2.) We may record facts separately in each appeal.

(3.) This appeal is filed by the Revenue against the respondent assessee, an individual Mukesh M. Sheth. The assessee had filed the return of income for the assessment year 2001-02. In such return, the assessee had shown to have received a gift of Rs. 1.50 crores from one Bipinchandra Kantilal Bhagat, an NRI based at UAE. The return was accepted under section 143(1) of the Income Tax Act, 1961 ('the Act' for short) without scrutiny. The assessee was subjected to search operation by the Income Tax department. The Assessing Officer passed block assessment order for the block period between 01.04.1996 to 12.09.2002. Main issue discussed by the Assessing Officer in such order was the onmoney received by the assessee through sale of land. Assessing Officer also examined whether this undisclosed income was routed into the assessee's bank accounts through gifts which were nongenuine. In the block order of assessment dated 30.09.2004, the Assessing Officer made detailed observations with respect to these two issues. We would take note of the contents of this order at a later stage. For the present, it would be sufficient to note that in such order, he had held that the undisclosed income through sale of land was already taxed in the hands of the partnership firm of whom the assessee was the partner and therefore it was necessary to tax the assessee separately. He also held some of the gifts to be genuine and the rest as nongenuine.