COMMISSIONER OF INCOME TAX Vs. K.C. MALHOTRA

JUDGEMENT

(1.) THE Revenue has approached this Court by filing the instant appeal under Section 260A of the IT Act, 1961 (for brevity, 'the Act'), challenging the order dt. 31st Oct., 2006 (A -3) passed by the Tribunal, Chandigarh Bench -A (for brevity, 'the Tribunal'), in ITA No. 27/Chd/2006. The Revenue has claimed that the Mowing substantial questions of law would arise for determination of this Court:

(2.) THE Tribunal has allowed the appeal of the assessee by deleting an amount of Rs. 13,56,000, which was added by the AO by invoking the provisions of Section 68 of the Act. However, the Tribunal has upheld the other additions of Rs. 2,61,532 calculated on the basis of GP declared by the assessee in his books of account and also the addition of Rs. 60,000 which was claimed to be income earned from the agricultural operation.

(3.) ON appeal filed by the assessee, the CIT(A), Chandigarh, upheld the order passed by the AO and the appeal was dismissed vide order dt. 13th Dec, 2005. On further appeal before the Tribunal to delete the addition of Rs. 13,56,000 made by the AO by invoking the provisions of Section 68 of the Act, the Tribunal has adopted the following reasoning: