- (1.) The present appeal is filed by the Revenue against the judgment and order dated September 18, 2003, passed by the Income-tax Appellate Tribunal, Lucknow, in I. T. A. No. 163/Luck/2000.
(2.) This court, vide its order dated February 11, 2004, admitted the appeal on the following substantial questions of law : 1. Whether the learned Income-tax Appellate Tribunal was right in law in holding that the assessee and his family members have received the gifts of the India Development Bonds, ignoring the evidence on record ? 2. Whether the learned Income-tax Appellate Tribunal was right in law in holding that the assessee is entitled to the immunity under sections 6 and 7 of the Remittances of Foreign Exchange and Investment, in Foreign Exchange Bonds (Immunities and Exemptions) Act, 1991, even though it was clearly proved that the assessee has not received the India Development Bonds as gifts ? 3. Whether the learned Income-tax Appellate Tribunal was right in law in holding that the assessee in fact has disclosed the receipt of the India Development Bonds during the course of filing of the return of income for the assessment year 1997-98, therefore, the query regarding the possession of the India Development Bonds falls outside the purview of the block assessment especially since this argument was taken for the first time before the learned Tribunal and does not form a part of the order of the Assessing Officer and that of the Commissioner of Income-tax (Appeals) ?
(3.) The brief facts of the case are that on August 21, 1998, a search and seizure operation was conducted at the residential and business premises of the group for which the assessee is a member. During the course of search, the books of account and other incriminating material were seized including FDRs in the name of the assessee who is the wife of Sri R. K. Gupta, a group member. She stated that she received these India Development Bonds (IDB) of U. S. dollars of 10,000 each by way of gift on November 14, 1994, and February 21, 1995. The amount of Rs. 5,69,884 after maturity of the India Development Bonds was credited in her savings bank account with the Chartered Bank, Kanpur, on March 3, 1997, and out of this amount, the said FDRs of Rs. 33,75,000 were obtained. The Assessing Officer has made an addition of this amount which was deleted by the Commissioner of Income-tax (Appeals). Not being satisfied, the Department has filed the second appeal before the Tribunal who upheld the order of the first appellate authority. Being not satisfied, the Department has filed the present appeal.;