D.SIVA SANKARA RAO Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal is filed under Section 260-A of the Income Tax Act, 1961 (for short 'the Act') by the assessee challenging the order dated 16-03-2007 in I.T.A.No.8/Vizag/2006 of the Income Tax Appellate Tribunal, "SMC", Visakhapatnam relating to the assessment year 2002-2003.

(2.) The Kartha of the appellant/assessee HUF by name Dr.D.Siva Sankara Rao is a medical practitioner running a hospital by name Siva Speciality Hospital at Jangareddygudem. On 22-10-2002, a survey was conducted under Section 133-A of the Act. Pursuant to the same, the assessee filed on 24-12-2002 his returns in the status of HUF for the assessment year 2001-2002 and 2002-2003 (besides returns in the status of individual). In the return for the assessment year 2002-2003, the assessee admitted taxable income of Rs.82,000/- and agricultural income of Rs.1.00 lakh. The assessee showed that the said income was from house property, money lending and other sources.

(3.) Notice under Section 143 (2) of the Act was issued to the assessee in response to which the Kartha of the HUF, Dr. D.Siva Sankara Rao and his authorized representative appeared before the assessing officer. The assessee contended that an amount of Rs.2.15 lakhs was liable to be paid by the assessee to Dr.Vani Subrahmanyeswari, wife of D.Siva Sankara Rao; that she had received gifts of Rs.1.00 lakh each in cash from her father and mother totaling Rs.2.00 lakhs during the previous year; that she added another amount of Rs.15,000/- out of her own savings and had given the above amount of Rs.2.15 lakhs as loan to the assessee.