2011 (12) TMI 526 - AT - Income Tax

Summary

Issues involved: Appeal against deletion of addition on account of setting off loss from trading in commodities against business income, treatment of loss as speculative in nature, additional business income declared by the assessee.

Summary:

Issue 1: Deletion of addition on account of setting off loss from trading in commodities against business income
- A search operation and survey revealed additional business income declared by the assessee.
- The Assessing Officer disallowed set off of loss from trading in commodities against business income, treating it as speculative.
- Assessee contended that the loss was covered by additional income declared voluntarily.
- CIT (A) found no other discrepancy and upheld the assessee's position.
- Tribunal held that the additional income offered by the assessee covered the disallowed amount.
- Tribunal dismissed the revenue's appeal, upholding CIT (A)'s decision.

Issue 2: Treatment of loss as speculative in nature
- Assessing Officer treated the loss from trading in commodities as speculative.
- Assessee argued that the loss was offset by additional income declared.
- CIT (A) found no other discrepancies and upheld the assessee's position.
- Tribunal agreed with CIT (A) and dismissed the revenue's appeal.

Issue 3: Additional business income declared by the assessee
- Assessee voluntarily declared additional business income of &8377; 15 crore.
- Assessing Officer disallowed set off of loss against business income.
- Assessee argued that the additional income covered the disallowed amount.
- CIT (A) found no other discrepancies and upheld the assessee's position.
- Tribunal upheld CIT (A)'s decision and dismissed the revenue's appeal.