BHARATI SAPRU,J. - (1.) Heard Shri Suyash Agrawal, learned counsel for the appellant and Shri Gaurav Mahajan, learned counsel for the department.
(2.) This appeal has been filed by the assessee under section 260A of the Income Tax Act (hereinafter referred to as the 'Act') against the order of the Income Tax Appellate Tribunal dated 10.11.2006 for the assessment year 2001-02. This appeal has been admitted on 17.03.2010 on the questions of law (A) and (E), which are quoted as below: '(A) Whether on the facts and circumstances of the case, the Income Tax Appellate Tribunal was confirmed the action of the CIT invoking the jurisdiction under section 263 of the Income Tax Act on the facts and circumstances of the case? (E) Whether the Income Tax Appellate Tribunal rightly considered that the interest under section 234A, 234B and 234C of the Income Tax Act was payable by the appellant in the proceedings under section 263 of the Income Tax Act?"
(3.) In short, during the previous year relevant to the assessment year 2001-02, the assessee had received two gifts of Rs. 75,000/- each. It appears, the assessing authority doubted the correctness of the claim of gifts during the course of the assessment proceedings. The donors Anil Kumar and Indu Bhushan confirmed the fact of having advanced the gift of Rs. 75,000/- each. They also claimed to have established that the gifts were given through cheque payments and the same were reflected in their books of account. Also it was explained that the donors acquired the money through sale of immovable properties. The Assessing Officer did make any further inquiry and accepted the factum of gifts.;