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TMI Blog2011 (5) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee, the Tribunal had rightly declined the claim of deduction u/s 80-IB in respect of excess income surrendered during survey on account of excess stock which was not reflected in the regular books of accounts - Decision against Assessee - IT APPEAL NO. 125 OF 2011 - - - Dated:- 24-5-2011 - ADARSH KUMAR GOEL, ACTG. C.J. AND AJAY KUMAR MITTAL, JJ. Pankaj Jain for the Assessee. JUDGMENT Ajay Kumar Mittal, J. This is assessee s appeal filed under s. 260A of the IT Act, 1961 (for short the Act ) against the order dt. 6th Nov., 2009, passed by the Income-tax Appellate Tribunal, Delhi C Bench (in short the Tribunal ) in ITA No. 3272/Del/2008, relating to the asst. yr. 2005-06. 2. The following substanti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee took the matter in further appeal before the Tribunal. The Tribunal also did not take any exception to the findings recorded by the AO and affirmed by the CIT(A), vide order dt. 6th Nov., 2009 and it is how the present appeal at the instance of the assessee. 5. Learned counsel for the assessee submitted that the undisclosed income was on account of surrender of additional stock found during the course of survey and, therefore, the same was to be considered for calculating deduction under s. 80-IB of the Act. According to the learned counsel, the surrendered amount was in the nature of business income and, therefore, the assessee was entitled to deduction under s. 80-IB on the surrendered amount. Support was drawn by the learned coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income is being made subject to no penalty and prosecution. No adjustment will be made against the surrendered income. The surrender of additional income is over and above the regular income as per books of accounts. Advance tax on the additional income will be deposited by 15th March, 2005. Post-dated cheque No. 1181332 dt. 15th March, 2005 for ₹ 15,00,000 of the Bank of India, G.T. Road, Panipat Branch is being given in lieu of advance tax. The surrender of additional income is for financial year 2004-05 relevant to asst. yr. 2005-06. 12. It is quite evident from the above letter submitted by assessee that ₹ 40 lakhs income was surrendered only on account of excess stock found as per physical verification. It was also sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es within the first degree of nexus between profit and industrial undertaking as found by the Hon ble Supreme Court in the case of Liberty India (supra), that can be made available for allowing the deduction under s. 80-IB of the IT Act. We, therefore, do not find any infirmity in the orders of lower authorities for declining claim of deduction under s. 80-IB in respect of extra income surrendered during survey on account of excess stock physically found as compared to the stocks indicated in the regular books of account. 7. The Tribunal had specifically recorded that the assessee had failed to show that the amount which was invested in the excess stock and was surrendered at the time of survey was derived from industrial undertaking. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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