BALBIR SINGH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal was admitted by this Court for consideration of following substantial question of law:

(2.) Facts necessary for adjudication as narrated in the appeal are that the Appellant is an individual and engaged in the business of sale and purchase of jewellery items and received a gift of Rs. 1 lakh from Harcharan Singh during the previous year relevant to the assessment year in question. The Assessee filed his return on 26-7-1994 declaring an income of Rs. 93, 180. During the course of assessment proceedings, the Assessee explained to the Assessing Officer that he received the said amount of Rs. 1 lakh from his childhood friend in the hour of need. The Assessing Officer relying upon the judgment of this Court in Lal Chand Kalra v. CIT,1981 22 CTR(P&H) 135 held that the gift received by the Appellant was compensatory and was liable to be taxed under Section 68 of the Income-tax Act, 1961 (in short "the Act"). Feeling aggrieved, the Appellant filed an appeal before the Commissioner of Income-tax (Appeals) [hereinafter referred to as "the CIT(A)"], who vide order dated 22-12-2003 upheld the view of the Assessing Officer. On further appeal by the Assessee, the Income-tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (in short "the Tribunal") vide order dated 31-8-2004 affirmed the orders passed by the authorities below. Hence, the present appeal by the Assessee.

(3.) We have heard learned Counsel for the parties and perused the record.