RAKESH KUMAR GARG, J. - (1.) THESE appeals have been filed by the Revenue under s. 260A of the IT Act, 1961 (hereinafter referred to as the 'Act') 707/Chd/2006 and ITA No. 706/Chd/2006.
(2.) SINCE the issues involved in these appeals are inter -related and arise from the common order of the Tribunal, both these appeals are being disposed of by this common judgment. For the sake of convenience facts are being extracted from ITA No. 487 of 2007.
(3.) THE assessee is an individual and engaged in the business of trading of iron and steel in the name of M/s Pankaj Sales Corporation. The assessee had filed the return declaring an income of Rs. 1,28,285. The said return was processed under s. 143(1)(a) of the Act, 1961. Subsequently, the AO received an information from Dy. Director of IT (Inv.), Ludhiana that the assessee had indulged in fictitious sale of goods to M/s Goyal Industries and received cheques aggregating to Rs. 7,65,000 against payment of cash. The AO after getting the approval of the CIT -II, Ludhiana assessee on the same date. During the course of reassessment proceedings, the assessee was confronted with the statements of Shri Jatinder cash aggregating to Rs. 7,65,000 to Shri Jatinder Kumar, Prop. M/s Goyal Industries to get the cheques of equal amount. Addition of Rs. 7,65,000 was thus made to the returned income of Rs. 1,28,285 as cash paid out of undisclosed sources.;