COMMISSIONER OF INCOME TAX Vs. KARAJ SINGH

JUDGEMENT

(1.) This appeal under section 260A of the Income-Tax Act, 1961 (for short "the Act") has been filed by the revenue against the order dated 2.11.2004, passed by the Income Tax Appellate Tribunal Amritsar Bench, Amritsar (in short "the Tribunal") in ITA No. 60/ASR/2000, relating to the assessment year 1992-93. The appeal was admitted for determination of the following substantial question of law by this court:

(2.) The facts, in brief, necessary for adjudication as narrated in the appeal, are that the assessee filed return for the assessment year 1992-93 on 22.4.1993 declaring income at Rs. 66,090. On a complaint received, the matter was investigated and it was found that the assessee had introduced his own secret funds to the tune of Rs. 1,50,000 through one Naresh Kapoor who first deposited that money in his account opened in the name of M/s. City Enterprises, Jalandhar and later on got prepared a bank draft in the name of the assessee on the pretext of foreign remittance and same was given to the assessee. Subsequently, proceedings under section 147 of the Act were issued and notice under section 148 of the Act was issued to the assessee on 10-7-1996 and in response to which the assessee filed return on 27-1-1997 declaring an income of Rs. 66,086. The assessment under section 143(3) read with section 147 of the Act was completed on 30-12-1998 and consequently the Assessing Officer vide order dated 30-12-1998 made an addition of Rs. 1,50,000 by invoking provisions of Section 68 of the Act.

(3.) Appeal carried by the assessee against the order of the assessing officer was dismissed by the Commissioner of Income-tax (Appeals) (in short "the CIT(A)"), vide order dated 15-11-1999. Appeal of the assessee was, however, allowed by the Tribunal vide order dated 2-11-2004 whereby the addition made by the assessing officer and sustained by the CIT(A) was deleted.