COMMISSIONER OF INCOME TAX Vs. HARDAT RAI SURESH KUMAR
LAWS(DLH)-2007-7-308
HIGH COURT OF DELHI
Decided on July 09,2007

COMMISSIONER OF INCOME TAX Appellant
VERSUS
Hardat Rai Suresh Kumar Respondents

JUDGEMENT

- (1.) ITA No.440/Del/04 relevant for the asst. yr. 1998 -99.
(2.) REASSESSMENT proceedings in respect of the assessee were initiated on the basis of a document which, according to the AO was a hundi. After reassessment, tax was levied on the assessee which was challenged by him before the CIT(A).
(3.) THE CIT examined the document and came to the conclusion that the contents of the document do not satisfy the requirements of a hundi. For this, the CIT entered into a detailed discussion and examined the document in the light of the requirements of a hundi as explained in CIT vs. Dexan Pharmaceuticals (P) Ltd. (1995) 126 CTR (AP) 57 : (1995) 214 ITR 576 (AP) Even on merits it was held that the addition was not justified. Feeling aggrieved by the order passed by the CIT, the Revenue preferred an appeal before the Tribunal. The Tribunal was desirous of looking into the document to ascertain whether it was a hundi or not and the Departmental representative was asked to produce the document. Despite an opportunity having been given, the Revenue did not produce the record before the Tribunal. Accordingly, the Tribunal drew an adverse inference against the Revenue and relied upon the view taken by the CIT who had examined the document and come to a conclusion that it was not a hundi. facts and also noted that the learned counsel for the Revenue had offered to produce a copy of the document before done in the meanwhile.;


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