- (1.)This appeal under section 360A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") is directed against the order dated 2nd March, 2007 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench "D", Ahmedabad in ITA No.2556/Ahd/2005, whereby the appeal preferred by the respondent revenue has been allowed.
(2.)By an order dated 09.04.2008, this appeal came to be admitted on the following question of law :
"Whether on the facts and in the circumstances of the case, Income-tax Appellate Tribunal, was right in law in reversing the order of CIT (A) of deleting the addition of Rs.7,02,000/- in respect of gifts received by the appellant as unexplained cash credit u/s 68 of the Income-tax Act, 1961."

(3.)The assessment year is 2002-03 and the relevant accounting period is the year ended on 31.03.2002. The assessee, who is engaged in the business of developers/housing projects, filed return of income in the capacity of an individual on 31.03.2003 declaring total income of Rs.1,05,044/-. The assessee has shown his income from partnership firm M/s Krishna Developers at Rs.31,441/- and income from M/s Rachit Land Developers, a proprietary concern of the assessee at Rs.86,103/-. Interest income on NSC and bank was also shown at Rs.9,565/-. The return was initially processed under section 143(1) of the Act, thereafter the same was taken up for scrutiny. During the course of assessment proceedings, upon verification of the capital account, it was noticed that an amount of Rs.7,02,000/- had been credited as fresh capital introduced during the year. The source of the same was shown as gifts received from the following persons:
[1] Ramesh Kheshani Rs.2,00,000/-

[2] Vinod Manghnani Rs.1,00,000/-

[3] Niranjan Chhotala Rs.1,00,000/-

[4] Rupchand Ramlal Prajapati Rs. 50,000/-

[5] Piraram Chelaram Rabari Rs. 50,000/-

[6] Mahavir Prasad Prajapati Rs. 50,000/-

[7] Vinod Jugraj Dungar Rs. 51,000/-

[8] Pankajkumar Jain Rs. 51,000/-

[9] Amit B. Solanki Rs. 50,000/-