COMMISSIONER OF INCOME TAX Vs. MANGAL SINGH

JUDGEMENT

(1.) This appeal has been filed by the revenue under Sec. 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 31.7.2008 (Annexure A -III) passed by the Income Tax Appellate Tribunal, Delhi Bench "E", New Delhi (hereinafter referred to as "the Tribunal") in ITA No. 3246/D/2004, for the assessment year 2000 -01, claiming the following substantial questions of law: -

(2.) Put shortly, the facts necessary for disposal of the present appeal as mentioned therein are that the assessee filed his original return on 24.1.2001 for the assessment year 2000 -01 in the status of 'individual' declaring the income at Rs. 7,64,920/ -. Subsequently, he filed the revised return on 26.3.2002 in the status of 'HUF' with no variations in the income. The said case was selected for scrutiny and notice under Sec. 143(2) of the Act was issued on 4.9.2002 along with questionnaire. The assessment was framed by the Assessing Officer vide order dated 28.3.2003 (Annexure A -I) under Sec. 143(3) of the Act at Rs. 92,11,020/ -. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity "the CIT (A)"]. The CIT(A) vide order dated 11.5.2004 (Annexure A -II) partly allowed the appeal and deleted the addition of Rs. 77,97,408/ -. Against the order of the CIT(A), the revenue filed an appeal before the Tribunal whereas the assessee filed cross objections. The Tribunal vide order dated 31.7.2008 (Annexure A -III) dismissed the appeal of the revenue and allowed the cross -objections filed by the assessee. It was held by the Tribunal that the assessment in the status of HUF was invalid and that the ground of appeal taken by the revenue on merits was merely academic. Hence, the present appeal by the revenue.

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