RAGHBIR SINGH Vs. INCOME TAX APPELLATE TRIBUNAL CHANDIGARH

JUDGEMENT

(1.) This appeal filed under Section 260 A of the Income Tax Act, 1961 (for brevity 'the Act') prays for quashing order dated 26.10.2006 (Annexure P.1) passed by the Income Tax Appellate Tribunal (for brevity 'the Tribunal') holding that the deletion of Rs. 6,00,000/- by the Commissioner of Income Tax ( Appeals) (for brevity 'the CIT(A)') which were added by the Assessing Officer by rejecting the genuineness of the gift, was absolutely incorrect. On the basis of the order passed by the Tribunal in ITA No.158 / Chandi/ 1997 in respect of assessment year 1993- 94 the Assessee has claimed that following substantive question of law would arise for determination of this Court:

(2.) On 31.3.1992, the appellant has filed his income tax return, for the assessment year 1993-94, declaring his total income at Rs.92,300/-. It was processed under Section 143(1)(a) of the Act on 8.5.1995. Thereafter search and seizure operations were carried out on 11.8.1995. The notices under Section 127 of the Act and notices under Sections 143(2) and 142(1) of the Act alongwith detailed questionnaire were issued to the appellant. He was asked to explain the amount of Rs. 6,00,000/- received by him in his bank account maintained with the Bank of Baroda, Parliament Street, New Delhi and Rs. 12,00,000/- received by the appellant's wife in her bank account. He filed reply to those notices and questionnaire by submitting all the requisite documents. The Assessing Officer passed the assessment order on 29.3.1996 under Section 143(3) of the Act by treating Rs. 18,00,000/- as income from undisclosed sources assessable to his income. The Assessing Officer also enhanced the house hold expenses from Rs. 83,700/- to Rs. 1,44,000/-.

(3.) The appellant challenged the order of the Assessing Officer before the CIT (A) and vide order dated 6.12.1996, the CIT(A) deleted the addition of Rs. 18,00,000/- in the hands of the assessee and also the addition of Rs. 60,300/- made on account of house hold expenses. With regard to deletion of Rs. 6,00,000/- received as gift by the appellant from one Gurmit Singh, the CIT(A) adopted the following reasoning: