TaxTMI 
TaxTMI 
2010 (12) TMI 687
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..... 375/CHANDI/2004, relating to the assessment year 2000-2001. The appeal was admitted on 10.12.2007 for determination of the following substantial question of law by this Court: "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in canceling the order passed by the CIT under Section 263 of the Income Tax Act, 1961, when the fresh assessment in pursuance to order passed under Section 263 of the Act has already been finalized on 28.12.2004 (whereas the order of the Tribunal has been passed on 28.2.2005) and the assessee has itself voluntarily surrendered the additional income of Rs.1,24,004/- on account of difference in stock, during the course of fresh assessment?' The facts, in brief, necessar....
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....various judgments noticed in its order did not concur with the view of the CIT and consequently, by order dated 28.2.2005 cancelled the order passed by the CIT. Hence, this appeal at the instance of the Revenue. In the meantime, the assessing officer re-considered the matter and after examining the controversy in the light of the observations made by the CIT, completed the assessment at Rs. 2,48,490/- vide order dated 28.12.2004. In the said proceedings, the assessing officer had made addition of an amount of Rs. 1,24,004/- as assessee's additional income which was surrendered by the assessee. We have heard learned counsel for the parties and perused the record.Learned counsel for the Revenue vehemently submitted that the CIT in exercise o....
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....into consideration by the assessing officer while passing assessment order dated 26.6.2001. The order of assessment dated 26.6.2001 was, thus, erroneous in so far as it was prejudicial to the interest of Revenue. Further, the CIT in the order passed under Section 263 of the Act, in paras 4 to 6 had recorded as under: 4. I have carefully considered the submissions of the assessee and material on record. It is seen from the Audited trading and profit and loss account filed along with the return of income that the assessee has not made any disclosure of the additional income of Rs. 1,24,004/- surrendered by it during the course of survey. Rather the gross profit was disclosed @ 6% as against 6.8% in the A.Y. 1999-2000 and @ 7.31% in t....