COMMISSIONER OF INCOME TAX XI CENTRAL REVENUE BUILDING NEW DELHI Vs. R N KUMAR
LAWS(DLH)-2007-1-9
HIGH COURT OF DELHI
Decided on January 24,2007

COMMISSIONER OF INCOME TAX -XI CENTRAL REVENUE BUILDING NEW DELHI Appellant
VERSUS
SHRI R.N.KUMAR 12/2, B-BLOCK, CONNAUGHT PLACE NEW DELHI-110001 Respondents

JUDGEMENT

V.B.GUPTA, J. - (1.) The present appeal is filed by the Revenue against the order dated 24th February, 2006 passed by the Income Tax Appellate Tribunal, Delhi Bench ?SMC? in ITA No.3869(Del)/2005 for the assessment year 1980-81.
(2.) The brief facts are that the original assessment in this case was completed on 28th February, 1983 at a loss of Rs.87,351/-. On receipt of information from ADI, Bombay, a notice under Section 148 of the Income Tax Act (for short 'Act') was issued to the Assessee in March, 1985. The Assessee did not file any return. Accordingly, Assessing Officer issued notice under Section 142(1) of the Act and the reassessment was done by making addition of Rs.3,10,000/- on account of cash credits appearing in the books which is as follows:- (i) Shri Prakash V.Thakkar Rs.1,50,000/- (ii) Ambica Corporation Rs.1,00,000/- (iii) Sh.K.D.Khona Rs. 60,000/- Rs.3,10,000/-
(3.) The reason stated for addition was that Sh.N.J.Rawal, a hundi broker, through whom these amounts have been received, indulged in 'Hawala' transaction. These persons were not produced to support the fact of making advance to the Assessee. The issue of reopening the assessment and addition travelled upto Income Tax Appellate Tribunal and the Division Bench of the Tribunal in ITA No.2017/Del/1990 decided on 24th April, 1994 upheld the action to initiate re- assessment proceedings. On merits, the Tribunal set aside the assessment to be framed afresh in accordance with law.;


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