TMI Blog2010 (12) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income Tax Act, 1961 by the assessee against order dated 11.6.2004 of the Income Tax Appellate Tribunal, Chandigarh Bench, passed in ITA No.281/Chandi/98 in respect of assessment year 1995-96. The assessee derives income from manufacture and sale of rice and its by-product. During search at the premises of M/s Partap Bhangu Solvex (P) Ltd., village Pasiana, a diary containing the details of rice bran purchased by that company from various persons including the appellant was seized. In the said diary there were entries pertaining to purchases made from the appellant and on being confronted, the assessee vide letter dated 24.3.1995 admitted the correctness of said entries and surrendered a sum of Rs.7.50 lacs as undisclosed income subje ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,000. As against this, the assessee disclosed the income of Rs.3931/- only which includes the amount surrendered of Rs.7,50,000 which means the assessee has disclosed the loss of more than Rs.7,45,000. The surrender of Rs.7.50 lacs of income subject to no penalty was made by the assessee on 24.3.95 i.e. Just one week before the end of the previous year. Thus, there was no scope of suffering loss up to 24.3.95. Most of the sales are before the said date. No evidence has been produced before the revenue authorities to support the claim of loss. On the other hand, the assessee has itself offered to surrender income of Rs.7,50,000. Even if there is no loss or profit on the sales as recorded in the books of account, the income of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he underbilling of the goods and assuming the sale having been made at a higher price the conclusion so drawn is perverse and need to be quashed? We have heard learned counsel for the parties. Learned counsel for the assessee submitted that surrendered income could not have been added to the income of the assessee without taking into account the loss incurred as rightly held by the CIT(A). The Assessing Officer has not found any defect in the books of account and in such a situation, book result could not be ignored. There being no evidence justifying addition, mere surrender could not be basis of the addition. Learned counsel for the assessee further submitted that in another case in similar circumstances, being order dated 12.5.2004 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directly applicable to the present case, wherein the sales of the assessee are duly vouched , since made through commission agents at Delhi and the AO has not doubted such sales made through the commission agents. We, therefore, considering the facts and circumstances of the case, are of the view that the CIT(A) while deleting the impugned addition has passed a well-reasoned and speaking order which does not need any interference from our side. We uphold the same and reject the ground of the revenue . We are unable to accept the submission. The Tribunal has clearly found that income disclosed by the assessee was not correct and invoices issued by the assessee were not genuine on its own admission. The surrender being voluntarily, no fur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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