COMMISSIONER OF INCOME TAX SALEM Vs. CHAN BASHA

JUDGEMENT

(1.) THIS appeal is filed under Section 260A of the Income Tax Act, 1961 by the Revenue, against the order of the Income Tax Appellate Tribunal, Chennai Bench 'D', Chennai in I.T.A. No.2880/Mds/2004 dated 24.03.2006 raising the following substantial question of law:- Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that there is no contribution made by the assessee during the assessment year for the construction, even though the investments are not contained in any books of account and they are unexplained or the explanation is unsatisfactory, the value of the investment is to be deemed to be the income of the assessee for the financial year preceding the assessment year under section 69 of the Income Tax Act, 1961"

(2.) THE facts leading to the above substantial question of law are as under: THE assessee is an individual engaged in the business of footwear. THE relevant assessment year is 1999-2000 and the corresponding accounting year ended on 31.03.1999. THE assessee has not filed Return of income and hence notice under Section 142(1) of the Income-tax Act ("Act" in short) was issued, calling upon the assessee to file his Return of income for the assessment year. In response to the notice, the assessee filed his Return of income on 24.03.2003 admitting a total income of Rs.49,866/-. Later notice under Section 143(2) was issued to the assessee. THE assessment was completed under Section 143(3) r/w Section 147 of the Act determining the total income at Rs.10,72,290/-. While completing the assessment, the Assessing Officer treated 50% of the difference in the cost of construction, i.e., Rs.10,22,425/- as assessee's unaccounted income from business and added the same to his total income. Aggrieved by the order, the assessee filed an appeal to the Commissioner of Income-tax (Appeals). THE C.I.T.(A) deleted the addition and set aside the order of the Assessing Officer. Aggrieved, the Revenue filed an appeal to the Income-tax Appellate Tribunal ("Tribunal" in short). THE Tribunal dismissed the Revenue's appeal and confirmed the order of the C.I.T.(A). Hence the present appeal by the Revenue.

(3.) IN view of the foregoing reasons, no substantial question of law arises for consideration of this Court and accordingly, the tax case is dismissed. No costs.