YASH PAL GOEL Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THIS , assessee's appeal, is directed against the order dated July 31, 2007, passed by the Income -tax Appellate Tribunal, Chandigarh Bench, Chandigarh ('the HAT), whereby two gifts of Rs. 49,000 each received by the assessee from Mohinder Singh were held to be sham and as such were added to his income for the assessment year 1999 -2000.

(2.) FACTS . The assessee filed the income -tax return for the assessment year 1999 -2000 on August 30, 1999, declaring an income of Rs. 1,15,482. The assessment was made under Section 143(1)(a) of the Income -tax Act, 1961 (for short 'the Act'), on June 8, 2000, accepting the declared income of the assessee. Subsequently, this assessment order was examined by the Assistant Director of Income -tax (Investigation) -II, Chandigarh. The Assistant Director suspecting the genuineness of the gifts received by the assessee - donee from Mohinder Singh, informed the Additional Commissioner of Income -tax, Range -I, Chandigarh, to reassess the income of the assessee for the assessment year 1999 -2000.

(3.) AGGRIEVED by the order of the Income -tax Officer, the assessee filed an appeal before the Commissioner of Income -tax (Appeals), Chandigarh (for short 'the CIT (Appeals'). During the pendency of the appeal before the Commissioner of Income -tax (Appeals), the assessee produced the donor. The Commissioner of Income -tax (Appeals) directed the Assessing Officer to record his statement. The statement (P -4) of Mohinder Singh was recorded. The Commissioner of Income -tax (Appeals) after examining the entire evidence, affirmed the findings of the Income -tax Officer by order dated February 9, 2007 (P -2).