COMMISSIONER OF INCOME TAX Vs. AVTAR SINGH

JUDGEMENT

(1.) THE instant appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') is directed against the order dated 13 -4 -2007 passed by the Income Tax Appellate Tribunal, Chandigarh Bench 'A', Chandigarh (hereinafter referred to as 'the Tribunal') in ITA No. 181/Chd/2006 in case of the respondent for the assessment year 1998 -99, by raising the following substantial questions of law:

(2.) IN the present case, during the course of a search operation at the business premises of M/s Damini Resorts & Builders (P) Ltd., a copy of agreement of sale of land, allegedly entered into by the assessee respondent herein, with said M/s Damini Resorts & Builders (P) Ltd., was found. According to that agreement of sale, the assessee had agreed to sell his share of land situated in village Dhandra for a sum of Rs. 16,42,522. However, subsequently the registered sale deed with regard to the said land was executed only for Rs. 5, 22, 641 by suppressing sale consideration to the tune of Rs. 11,19,920.

(3.) AGGRIEVED against the said order, the assessee filed an appeal before the Commissioner of Income Tax (Appeal) -I, Ludhiana (hereinafter referred to as 'the Commissioner (Appeals)'). Since nobody attended the proceedings, therefore, the said appeal was dismissed, and the order of the assessing officer was confirmed. Subsequently, the assessee filed application for recalling the said order. The application was also dismissed by the Commissioner (Appeal). Against the said order, the assessee approached the Tribunal, who vide order dated 22 -9 -2005 allowed the appeal of the assessee and directed the Commissioner (Appeals) to decide the appeal filed by the assessee on merits. Consequently, the Commissioner (Appeals) allowed the appeal of the assessee holding that the assumption of jurisdiction by the assessing officer was wrong as there was no service of notice under Section 148 of the Act.