2008 (1) TMI 6

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.... found in the premises of Kamal Chand Jain and it was believed to be a hundi for a sum of Rs.7 lakhs.  A photocopy of the said document along with its English translation has been placed on record. 3.   On the basis of the hundi and the presumption drawn under Section 69Dof the Income Tax Act, 1961 ('the Act'), the Assessing Officer assessed a sum of Rs.7 lakhs in the hands of the Assessee. 4.   The Assessee preferred an appeal before the Commissioner of Income Tax (Appeals) ['CIT(A)'], who conducted a rather detailed examination relating to the law explaining what is a hundi. The CIT(A) relied upon a decision of the Andhra Pradesh High Court in Commissioner of Income Tax v. Dexan Pharmaceuticals (P) Ltd., (1995) ....

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....ements, the document should be executed on hundi paper and not on any other paper. 7.   On the basis of the case law, the CIT(A) came to the conclusion that the document was not executed on a hundi paper but on the letter-head of the Assessee and that it did not have all the characteristics of a hundi as explained by the Andhra Pradesh High Court, the Calcutta High Court and the Madras High Court. In addition, it was a bilateral transaction. On this basis, the CIT(A) allowed the appeal of the Assessee and set aside the addition. 8.   The Revenue then preferred an appeal before the Tribunal, which did not find any error in the view taken by the CIT(A). The Tribunal also noted that the Assessee had denied his signatures ....