COMMISSIONER OF INCOME TAX Vs. RAJ KUMAR ARORA

JUDGEMENT

(1.) For the assessment year 2000-01, the assessee filed the regular return of income on 29.08.2000 showing a total income of Rs. 14,03,630/-. In the regular return of income, the assessee has showed income from salary from M/s Som Fragrance Pvt. Ltd. in which the assessee himself claimed to be a Director and also showed rental income, interest income on FDRs, Saving Bank Accounts, UTI Bonds and minor children income. The return of income was processed under Section 143(1) of the Income Tax Act (hereinafter referred to as the Act) on a total income of Rs. 16,15,250/-.

(2.) A search and seizure operation was carried out on 01.09.2005. During the course of search and seizure operation, incriminating documents along with cash, jewellery and other valuables were found and seized. Consequent to the search, jurisdiction of the assessee was centralized to the Assistant Commissioner of Income Tax, Kanpur under Section 127 of the Act. Notice under Section 153A of the Act was issued and thereafter notice under Sections 143(2) and 142(1) was issued and served upon the assessee. In compliance to the above notices, the assessee intimated the Assessing Officer stating therein that regular return of income filed under Section 139 of the Act may be treated to be filed in compliance to the notice under Section 153A of the Act.

(3.) During the course of assessment proceedings under Section 153A of the Act, the Assessing Officer found that the gift received by the minor children from various persons was a sham transaction and the assessee failed to prove the genuineness of these gifts. The Assessing Officer,accordingly, made an addition in this regard while completing the assessment under Section 153A of the Act.