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TMI Blog2012 (7) TMI 433X X X X Extracts X X X X X X X X Extracts X X X X ..... tion over and above the regular income/loss. 2. On the facts and in the circumstances of the case, the Ld CIT(A) has erred on facts and in law in allowing to set off the surrendered income against business losses. The income disclosed at the time of survey was deemed income u/s 69 and it cannot be set off against business loss in view of the judgment of Hon'ble Gujarat high Court in the case of Fakir Mohd. Haji Hasan v. CIT 247 ITR 290 and judgment of Hon'ble Punjab & Haryana High Court in the case of Sarla Handicrafts (P) Ltd. v. Addl. CIT 296 ITR 94. 3. That the appellant craves for the permission to add, alter, delete or amend the grounds of appeal before or at the time of hearing of the appeal. 2. The brief facts of the case are that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inancial year 2007-08 relevant to assessment year 2008-09." 3. The Assessing Officer found that the assessee has shown the surrender value of Rs. 40,00,000/- as other income in the P&L A/c for the financial year 2007-08 and has adjusted the same from loss incurred during the year. The Assessing Officer did not agree with such adjustment and therefore assessed the income of the assessee at Rs. 40,00,000/- without considering the set off from the losses. Aggrieved, the assessee filed appeal before ld CIT(A) and submitted the following submissions before him:- 1) That the offer of surrender of `.40,00,000/- cannot effect the profit or loss declared by the assessee for that year. It will be added if there is profit and it will be reduced if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income Tax Act, 1961 and liable to be taxed under the residuary head of income i.e. the income from other sources. The additional income surrendered for taxation does not necessarily inflict liability for payment of tax. The only consequence of such surrender would be that the income so surrendered would form part of computation of total income. Consequently, the addition of Rs. 40,00,000/- separately made by the Assessing Officer for the purpose of payment of tax is deleted." 5. Aggrieved, the revenue has filed appeal before this Tribunal. 6. The Ld DR argued that income disclosed at the time of survey was deemed income u/s 69 of the Act and it cannot beset off against business loss in view of the judgment of Hon'ble Gujarat Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce to Hon'ble Pubjab & Haryana High Court, the Court did not agree with the contention of assessee and held that surrendered income cannot be said to be income from business. In the second case of Mohd. Haji Hassan v. CIT (supra) it was held that value of gold confiscated during custom raid will be included in the income of the assessee as source of investment in the gold was not explained and that the assessee was not entitled to claim that the value of confiscated gold should be allowed as a deduction from his income. In view of the above, the Ld AR argued that the facts of the case cited by Ld DR do not fit in the facts of the present case and rather the facts of the case law cited by him squarely fit in the facts of the present case. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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