- (1.) THE present appeal has been filed under Section 260 (A) of the Income Tax Act, 1961 (hereinafter referred to as the 'Act') against the order dated 29.3.2011 passed by the Income Tax Appellate Tribunal, Agra Bench, Agra (hereinafter referred to as the 'Tribunal'). The appellant has proposed the following four questions said to be substantial question of law arising out of the order of the Tribunal: - "1. Whether on the facts and circumstances of the present case, the Income Tax Appellate Tribunal was legally justified in confirming the addition of Rs. 5,00,000/ - made by assessing officer u/s 68 of the Act on account of rejecting the gift received by the appellant? 2. Whether on the facts and circumstances of the present case, the Income Tax Appellate Tribunal was legally correct in rejecting the gift received by appellant which is duly supported by relevant documents and evidences? 3. 1. Whether on the facts and circumstances of the present case, the Income Tax Appellate Tribunal was legally justified in confirming the proceeding u/s 147 of the Act made by the assessing officer on the basis of information received from other authorities and without material and evidence on record to establish that income has escaped assessment? 4. Whether in any view of the matter and the judicial pronouncements, the Income Tax Appellate Tribunal was legally correct to disbelieve the transaction of genuine gift and in confirming the addition of Rs. 5,00,000/ - to the returned income of the appellant under section 68 of the Act?" Briefly stated, the facts giving rise to the present appeal are as follows: -
(2.) THE appeal relates to the Assessment Year 2001 -02. The appellant is an individual. A notice u/s 148 of the Act was issued on 26.12.2008 on the ground that an information has been received that the appellant has taken loan from one M/s. Amit Agarwal and Company to the tune of Rs. 22 lakhs and in the search conducted on Ganga Ram Agarwal group of cases, it was found that the above parties provided cheque in lieu of cash receipts from the persons (debtors) who wanted to have entries of loans in their books of accounts. M/s. Amit Agarwal and Company was connected with Ganga Ram Agarwal group of cases. On this information, proceedings u/s 147 was initiated. In response to the notice issued, the appellant submitted that the return filed for the assessment year 2001 -02 on 24.9.2001 may kindly be treated as a return filed in compliance to the notice issued u/s 148. In the course of the re -assessment proceedings, the appellant was found to have received gift of Rs. 5 lakhs from one Sri Lekhraj Jain. The appellant was asked to substantiate the gift. Notice u/s 133(6) of the Act was issued to the donor Sri Lekhraj Jain, to which no reply was received. The appellant's advocate Sri Krishan Chand Gupta, stated that the address of the donor is not available and therefore, he is unable to give any information. Copy of the bank account of Sri Lekhraj Jain was filed, which on scrutiny, revealed that just prior to the date of receipt of the gift, a sum of Rs. 5 lakhs was deposited in his bank account by way of transfer and immediately on the same day, a draft was prepared for a sum of Rs. 5,01,500/ - which was given as gift. The Assessing Officer disbelieved the factum of gift and brought it to tax.
(3.) THE appellant, feeling aggrieved, preferred an appeal before the Commissioner of Income Tax (Appeals), Agra who vide order dated 31.7.2009 partly allowed the appeal, but the re -opening of the assessment as also the addition of Rs. 5 lakhs claimed as gift, was upheld.;