- (1.) The present appeal has been filed by the Department under Section 260A of the Income-Tax Act, 1961 against the judgment and order dated 07.11.2008, passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. No. 285/Luc/2006, for the assessment year 2002-03.
(2.) On 20.05.2010, a Coordinate Bench of this Court has admitted the appeal on the following substantial question of law:- "Whether in spite of the fact that the income was surrendered by the assessee before the Assessing Officer and tax thereon was deposited, the learned Income Tax Appellate Tribunal has committed substantial illegality in deleting the additions on account of the alleged bogus capital gains and also without opportunity to carry on necessary enquiries by the assessing officer".
(3.) The brief facts of the case are that the assessee is an individual, who had income from partnership firm, dividend interest. In the return, it was declared that the assessee was having the capital gain bonds in NABARD worth Rs.20.00 lacs, which was purchased through M/s. Goyal Achal Sampati. Later, it was sold for a consideration of Rs.20,54,592/-. The capital gain was worked out to Rs.19,99,238/-. The assessee has claimed exemption from tax as she had reinvested Rs.20.00 lacs in RBI capital bonds. On scrutiny, the Assessing Officer (AO) found that the transactions are not genuine, so he made the addition. The CIT(A) has confirmed the same, but in second appeal, the Tribunal has deleted the addition. Being aggrieved, the Department has filed the present appeal.;