COMMISSIONER OF INCOME TAX Vs. LEKH RAJ DHUNNA

JUDGEMENT

(1.) This order shall dispose of IT Appeal Nos. 126 and 127 of 2003 as common question of law and facts are involved therein. For brevity, the facts are being taken from IT Appeal No. 126 of 2003.

(2.) This appeal was admitted on 22nd Jan., 2004 for determination of the following substantial question of law :

(3.) Facts necessary for adjudication of the present appeal, as narrated therein, are that the search was conducted at the residence of the Assessee on 15th April, 1993. The Assessee being individual filed his return on 28th March, 1994 declaring an income of Rs. 2,00,000. The assessment was completed on 31st March, 1999 (Annex. A) by the Dy. CIT and the income was assessed at Rs. 13,02,440 by making addition of Rs. 9,00,000 on account of income from commission on sales. Feeling aggrieved, the Assessee went in appeal and the CIT(A) vide order dt. 20th Dec, 1999 upheld the addition of Rs. 9,00,000 made by the AO. Still feeling aggrieved, the Assessee approached the Tribunal who vide order dt. 28th Feb., 2003 deleted the addition of Rs. 9,00,000 holding that there was no evidence to conclude that the Assessee had actually earned the commission on sale. Hence, the present appeal by the Revenue.