COMMISSIONER OF INCOME TAX Vs. MOHAN LAL AGARWAL

JUDGEMENT

(1.) THE present appeal has been filed under Section 260 (A) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') against the order dated 20.8.2009, passed by the Income Tax Appellate Tribunal, Agra (hereinafter referred to as the 'Tribunal'). The Commissioner of Income Tax, Agra has proposed the following substantial question of law said to be arising out of the order of the Tribunal: -

(2.) THE appeal relates to the Assessment Year 1998 -99. The respondent assessee is an individual engaged in the activities of building, construction and sale of properties. He had filed his return of income on 30.10.1999 declaring an income of Rs. 1,21,040/ -. Subsequently, re -assessment proceedings were initiated on receipt of information from the DCIT, Central Circle ­ 3, New Delhi that the assessee had shown bogus sale of jewellery to M/s. Bishan Chand Mukesh Kumar, New Delhi. Pursuant to the re -assessment proceedings, the respondent through his authorized representative appeared and submitted documents to show that the information received is not correct. The respondent had filed the declaration under the Voluntary Disclosure of Income Scheme, 1997. The declaration made under the said scheme as also the sales vouchers and proof of the amount of consideration had been received through bank drafts. The partner of M/s. Bishan Chand Mukesh Kumar, namely, Sri Bishan Chand was also examined and confirmed the transactions of sale effected through him. The Assessing Officer however did not believe the statement and the documentary evidence filed before him and vide order dated 29.12.2005 assessed the income at Rs. 38,05,406/ -, comprising of unexplained accretion in assets at Rs. 36,84,366/ - . Feeling aggrieved, the respondent preferred an appeal before the Commissioner of Income Tax (Appeals) who vide order dated 12.2.2008 allowed the appeal. The Commissioner of Income Tax (Appeals) while allowing the appeal has held as follows: -