COMMISSIONER OF INCOME TAX Vs. UMANG AGARWAL

JUDGEMENT

(1.) THE present appeal is filed against the judgment and order dated May 26, 2006, passed by the Income -tax Appellate Tribunal, Allahabad, in I.T.R. No. 464/Alld./05 for the block period April 1, 1996, to September 4, 2002. On May 15, 2012, a co -ordinate Bench of this court has admitted the appeal on the following substantial question of law :

(2.) THE brief facts of the case are that on April 9, 2002, a search and seizure operation was carried out at the business and residential premises of the assessee where some incriminating material was seized. Block assessment under section 158BC was completed on March 30, 2004, for an undisclosed income of Rs. 1,48,94,580. On September 1, 2004, the assessee had filed a regular return for the assessment year 2002 -03 (which falls within the block period) by showing the income of Rs. 53,27,812. The same was accepted by the Assessing Officer.

(3.) THE Tribunal has allowed the claim of the assessee by observing that partial advance tax was paid, return was filed within the extended time allowed under section 139 of the Income -tax Act. The assessee was maintaining proper books of account. Not being satisfied the Department has filed the present appeal.