CIT Vs. SANJAY KUMAR AGRAWAL

JUDGEMENT

(1.) THE present appeal has been filed under Section 260(A) of the Income Tax Act, 1961 (hereinafter referred to as the Act) from the order dated 30.9.2008 passed by the Income Tax Appellate Tribunal, A Bench, Lucknow (hereinafter referred to as the Tribunal), by which, the addition of Rs. 6 lakhs in the income of the assessee has been deleted. The Income Tax Commissioner, Bareilly has proposed the following substantial question of law said to be arising out of the order of the Tribunal: -

(2.) FEELING aggrieved, the assessee filed an appeal from the aforesaid order before the Commissioner of Income Tax (Appeals), Bareilly, which has been dismissed by the order dated 25.3.2008. The assessee filed a second appeal before the Income Tax Appellate Tribunal, A Bench, Lucknow which was allowed by the impugned order dated 30.9.2008. The Tribunal found that there was no material before the Assessing Officer for initiating proceedings u/s. 148 of the Act. Accordingly, the addition made after finalization of the return was illegal.

(3.) SRI Garg has raised a preliminary objection to the maintainability of the appeal as the tax effect in the present case is less than Rs. 2 lakhs. The Central Board of Direct Taxes has issued a circular dated 27.3.2000 in exercise of powers u/s. 268(A) of the Act, which is reproduced as under: -