Enclosed is the Honble Agra ITAT CASE wherein it has been held that merely because the assessee has,
under misconception of facts or law, surrendered an income, no addition can be
made in respect of the same wherein it has been held as under
under misconception of facts or law, surrendered an income, no addition can be
made in respect of the same wherein it has been held as under
"We have noted that even though learned CIT(A) has given categorical
findings on merits as also on the admissibility of surrender, the Assessing Officer has
raised grievance only against the latter. The issue raised before us is thus
infructuous inasmuch as even if the surrender is in order but the addition was not
warranted on merits, it is only elementary that merely because the assessee has,
under misconception of facts or law, surrendered an income, no addition can be
made in respect of the same. We have also noted that as evident from the
observations of even the Assessing Officer, there were no specific reasons for
making the addition of Rs 10,00,000 save and except for the alleged surrender made
by the assessee. The issue in appeal is also covered, in favour of the assessee, by
a coordinate bench of this Tribunal in the case of ACIT Vs Satya Narayan Agarwal
(91 TTJ 481) wherein it is held that no addition can be made on the basis of a
surrender simplictor even when surrender is made during the course of survey
proceedings under section 133 A. In view of these discussions, as also bearing in
mind entirety of the case, we approve the conclusions arrived at by the learned
CIT(A) and decline to interfere in the matter.
findings on merits as also on the admissibility of surrender, the Assessing Officer has
raised grievance only against the latter. The issue raised before us is thus
infructuous inasmuch as even if the surrender is in order but the addition was not
warranted on merits, it is only elementary that merely because the assessee has,
under misconception of facts or law, surrendered an income, no addition can be
made in respect of the same. We have also noted that as evident from the
observations of even the Assessing Officer, there were no specific reasons for
making the addition of Rs 10,00,000 save and except for the alleged surrender made
by the assessee. The issue in appeal is also covered, in favour of the assessee, by
a coordinate bench of this Tribunal in the case of ACIT Vs Satya Narayan Agarwal
(91 TTJ 481) wherein it is held that no addition can be made on the basis of a
surrender simplictor even when surrender is made during the course of survey
proceedings under section 133 A. In view of these discussions, as also bearing in
mind entirety of the case, we approve the conclusions arrived at by the learned
CIT(A) and decline to interfere in the matter.
Regards
Prarthana Jalan
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