CIT Vs. URMILA CHADHA

JUDGEMENT

(1.) The revenue has filed the instant appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act'), challenging order 18-5-2007, passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as 'the Tribunal'), in ITA No. 120/Asr/2004, in respect of the assessment year 1996-97, claiming that the following substantial questions of law would arise for determination of this Court:

(2.) Brief facts of the case are that the assessee is trading in pig iron and cast iron scrap. Return of income was filed by the assessee on 31-10-1996 declaring total income at Rs. 64,460. On 30-12-1998, assessment under Section 143(3) of the Act was framed at an income of Rs. 17,49,270. On 3-8-1999, income was further revised to Rs. 18,49,270, under Section 154 of the Act. The assessee filed an appeal against the assessment order before the Commissioner (Appeals), who vide his order 3-4-2000 deleted addition of Rs. 10,000 made in the trading account, however, confirmed addition of Rs. 2,046 being not pressed by the assessee and also set aside the remaining order to be passed afresh. Thereafter, notice under Section 143(2) of the Act was issued to which the assessee filed reply. After reassessment, the assessing officer vide order 26-3-2002 (A-1) made two additions of Rs. 1,20,000 and Rs. 13,33,118 on account of unaccounted sales.

(3.) Feeling aggrieved, the assessee again preferred an appeal before the Commissioner (Appeals) who deleted both the additions vide order 30-12-2003, passed under Section 250(6) of the Act (A-2). The revenue then filed further appeal before the Tribunal, which has been dismissed vide order 18-5-2007 (A-3), which is subject matter of present appeal. On the first issue regarding deletion of Rs. 1,20,000 by the Commissioner (Appeals), which was made by the assessing officer on account of unexplained investment, the Tribunal has held as under: