KRISHAN KUMAR PALTA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) CM No. 13607 CII of 2015.

(2.) ALLOWED as prayed for. The documents appended as Annexure R.1 (Colly.) are taken on record. CM stands disposed of.

(3.) A few facts relevant for the decision of the controversy involved as narrated in the appeal may be noticed. The appellant is a proprietor of Rama Tyres, SCO 494, Motor Market, Manimajra, trading in tyres and tubes etc. He has been filing his regular returns of income. Source of his income is from agriculture and spare parts business. From 1969 onwards, he is working as government contractor. Return of income was filed by the assessee declaring income of Rs. 1,98,166/ - on 31.10.2000 alongwith balance sheet as on 31.3.2000 showing gift of Rs. 10 lacs received during the year under consideration. The return was processed under Section 143(3) of the Act on 14.5.2001. On 4.3.2005, notice for reassessment proceedings was issued under Section 148 of the Act and was served on the appellant on 9.3.2005 stating that the appellant had concealed the income of Rs. 10 lacs in the garb of alleged gift which was chargeable to tax and which income had escaped assessment. In reply to the notice, the appellant stated that the original return filed by him may be treated as return filed in response to the notice. Subsequently, a notice dated 9.1.2006 was issued to the assessee under sections 142(1) and 143(2) of the Act. In reply to the notice, the appellant pleaded that the gift of Rs. 10 lacs was received from Abinashi Lal Bajaj through pay order dated 21.11.1999 supported by gift deed by the donor. The aforesaid amount was stated to be out of NRE account and credited in Saving Bank account of Punjab National Bank. Copies of bank statement, gift deed duly signed by the donor and affidavit executed by the donor were submitted. Since the donor was not cooperating and to avoid litigation, the appellant surrendered Rs. 10 lacs subject to no penal action under the Act. The Assessing Officer not satisfied with the reply made addition of Rs. 10 lacs treating the gifts as undisclosed income vide order dated 28.2.2006, Annexure A.4. Aggrieved by the order, the assessee filed appeal before the Commissioner of Income Tax (Appeals) [CIT(A)]. Vide order dated 23.1.2009, Annexure A.7, the appeal was dismissed holding that the appellant failed to establish the genuineness of the transactions during the course of assessment/penalty proceedings. The assessee went in appeal before the Tribunal. Vide order dated 21.4.2014, Annexure A.10, the Tribunal dismissed the appeal. Hence the instant appeal by the assessee.