COMMISSIONER OF INCOME TAX Vs. KAILASH KUMAR

JUDGEMENT

(1.) The Revenue has approached this court by filing the present appeal under section 260A of the Income-tax Act, 1961 (for short, "the Act") laying challenge to the order dated July 6, 2005, passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for brevity, "the Tribunal") in I.T.A. No. 509(ASR)/2004 in respect of the assessment year 1989-90. In our considered view, the following question of law would emerge from the order of the Tribunal for determination by this court:

(2.) The facts leading to the filing of instant appeal are being noticed. For the assessment year 1989-90, the respondent-assessee filed the return on November 15, 1989, showing his income to be Rs. 21,330. However, the Assessing Officer called upon the assessee to render explanation in respect of 12,000 pounds shown by the assessee as foreign gift and about the investment of Rs. 20,000 made by him in M/s. Mohan Lal and Co. During the course of assessment proceedings, the assessee replied to the questionnaire and furnished explanation that he had received the said amount equivalent to Rs. 3,16,570 from Y.P. Wadhera who is residing in the U.K. The Assessing Officer doubted the explanation put forth by the assessee. The Assessing Officer took notice of the fact that the donor and the donee had no relationship with each other. The Assessing Officer, vide order dated November 7, 1990, directed that the said amount be added to be income of the assessee on account of his income from undisclosed sources, as it was bogus gift re-routed as a foreign remittance. The Assessing Officer also gave directions for initiating penalty proceedings as prescribed under section 271(1)(c) of the Income-tax Act.

(3.) Dissatisfied with the same, the Revenue has filed the instant appeal.