GURJEET SINGH Vs. COMMISSIONER OF INCOME TAX, PATIALA

JUDGEMENT

(1.) This appeal has been preferred by the assessee under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 25.1.2012 passed by the Income Tax Appellate Tribunal, Chandigarh Bench "B", Chandigarh (hereinafter referred to as "the Tribunal) in ITA No. 1335/CHD/2010, for the assessment year 2007-08, claiming the following substantial questions of law:-

(2.) Briefly stated, the facts necessary for adjudication of the present appeal as narrated therein are that the assessee being an individual is engaged in the business based at Patiala. He filed his return of income for the assessment year 2007-08 on 29.10.2007 declaring income at ' 1,62,650/-. The said case was taken up for scrutiny. The Assessing Officer found that the assessee had credited an amount of ' 4,29,460/- on account of the sale of shop. The assessee vide his letter dated 6.10.2009 explained to the Assessing Officer that the shop was purchased on 27.9.2005 for a sum of ' 5,50,000/-. Further, it was explained that a sum of ' 3,50,000/- was spent on settlement as the shop in question was disputed. In this way, the total cost of the shop came to be ' 9,00,000/-. The said shop was sold for an amount of ' 9,25,000/- and the payment was received through two cheques. The Assessing Officer vide order dated 26.11.2009 (Annexure A-1) made an addition on account of short term capital gain of ' 3,75,000/- holding that the property was purchased for ' 5,50,000/- and sold for ' 9,25,000/-. Against the said addition made by the Assessing Officer, the assessee approached the Commissioner of Income Tax (Appeals) [in short the "CIT(A)"] by way of an appeal.

(3.) We have heard learned counsel for the appellant.