COMMISSIONER OF INCOME TAX, PATIALA Vs. PREM CHAND

JUDGEMENT

(1.) The revenue has preferred this appeal under section 260A of the Income Tax Act, 1961 (in short, "the Act") against the order dated 27.1.2006 passed by the Income Tax Appellate Tribunal, Chandigarh, Bench 'B', in ITA No.12/Chandi/2004, for the assessment year 1997-98, claiming following substantial question of law:-

(2.) The appeal was admitted on 31.10.2006 for determination of aforesaid substantial question of law.

(3.) The Assessing officer made an addition of Rs. 6,09,247/- holding that the amount which was surrendered by the assessee relating to the assessment years 1985-86 and 1986-87 was not available with him during the current year and as such was undisclosed income of the assessee. However, on appeal, the Commissioner of Income Tax (Appeals) [CIT(A)] deleted the addition holding that the amount which was surrendered in the assessment years 1985-86 and 1986-87 was available with the assessee in the current year. On a further appeal by the revenue, while upholding that the said amount which was not disclosed was not utilised for meeting the expenses or for acquisition of any asset, it was held by the Tribunal that the same could not be added in the income of the assessee. However, since there was deficiency of Rs. 53,887/- which had not been satisfactorily explained by the assessee, the addition to that extent was upheld by the Tribunal. Not satisfied with the order, the revenue has filed the present appeal.