ADARSH SOOD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This appeal been preferred by the revenue under Section 260A of the Income-tax Act, 1961 (in short, "the Act") against the order dated 24.2.2006, Annexure P-I passed by the Income Tax Appellate Tribunal, "SMC", Delhi (in short, "the Tribunal"), proposing to raise following substantial questions of law for determination of this Court:--

(2.) Learned counsel for the appellant submitted that neither the provisions of Section 68 of the Act were attracted nor provisions of section 41(1) of the Act were applicable. It was urged that it was under bona fide belief that three entries in the books of account of the assessee amounting to Rs. 1,03,648/- which had been treated to be income by the Assessing Officer were not income of the assessee. It was also argued that the judgment of the Apex Court in CIT v. T.V. Sundaiam Iyengar & Sons Ltd., 1996 222 ITR 344 was not applicable and was distinguishable as in that case, the assessee had carried the amount to the profit and loss account and in such a situation, the amount was treated to be income of the assessee.

(3.) On the other hand, learned counsel for the respondent-revenue supported the order passed by the Tribunal.