TMI Blog2006 (9) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and circumstances of the present case the action of the authorities below in restricting the deduction under section 80HHC of the Income Tax Act, 1961 on its own presumption, is legally sustainable in the eyes of law ? (ii) Whether the action of the Tribunal in confirming that stock surrendered under survey is income from in other sources and not eligible for deduction under section 80HHC claimed by appellant/assessee without appreciating the ration of judgments laid down by the appellant/assessee in its correct perspective, is legally sustainable in the eyes of law ?" 2. The facts noticed in the order of the Tribunal are that the assessee filed a return declaring its income of Rs.6,67,850/- on December 29, 1999. The case wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and does not fulfil the conditions under section 80HHC of the Act. The assessee in his reply dated December 5, 2000 submitted that the surrender of Rs.12 lakhs made by him over and above his normal business income represents business income since this is on account of stock surrendered during survey operations at the business premises on February 30, 1999. Stocks were calculated by applying fix GP whereas during the year under consideration GP was higher. Miscellaneous income which represent excess stocks is eligible for deduction under section 80HHC of the Act since it is business income". 4. The Assessing Officer did not accept the stand of the assessee and held that the excess stocks available at the premises were not recorded in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unexplained stocks represented export income. The assessee was unable to give any explanation. There could be no presumption that additional amount surrendered represented income from exports. Deduction under Section 80HHC of the Act can be claimed only on showing facts which made the assessee eligible for the deduction. The burden to prove these facts was on the assessee and not on the Revenue. 8. The judgment relied upon is on its own facts and not in respect of claim for deduction under Section 80HHC of the Act. In any case, from the facts of the present case, the assessee cannot be held to be entitled to claim income surrendered as a result of unexplained stocks as income from exports. 9. Accordingly, we do not find that any s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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