CIT Vs. SONALI JAIN

JUDGEMENT

(1.) THIS income tax appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") has been preferred by the individual assessee against the order of the Income Tax Appellate Tribunal, Lucknow Bench dated 20.7.2007 passed in Income Tax Appeal No. 258/LUC/2006 concerning penalty in connection with assessment year 2001 -02. The respondent assessee for the relevant assessment year filed her income tax return on 31.7.2001 disclosing income of Rs. 1,34,696/ -. She thereafter revised her return on 28.3.2002 and declared her income to be Rs. 3,84,696/ - by adding additional income of Rs. 2,50,000/ - which was earlier shown as gift received from Ashok Jain.

(2.) THE assessment order was passed under Section 143(3) of the Act on 28.2.2003 and her taxable income was assessed to be Rs. 6,34,696/ - by further including Rs. 2,50,000/ - shown to have been received as gift from Smt. Usha Jain and surrendered during assessment proceedings. The appeal of the assessee against the assessment order was dismissed.

(3.) THE Assessing Officer vide order dated 31.3.2004 rejected the explanation of the assessee and imposed a penalty of Rs. 1,50,000/ -. The appeal against the same was dismissed on 17.1.2006. However, the tribunal vide impugned order dated 20.7.2007 allowed the second appeal holding that the authorities below have not given any finding as to why the explanation furnished by the assessee was false or untrue.