2013 (6) TMI 502

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....,VP. This appeal by the assessee is directed against the order of learned CIT(A)-XXVI, New Delhi dated 27th September, 2012 for the AY 2008-09. 2. The only ground raised by the assessee reads as under:- "That on the facts and the circumstances of the case the learned CIT(A) has erred in maintaining the addition of Rs.8,14,073/- out of the addition of Rs.10,48,461 made by the learned AO wh....

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.... undisclosed income of the assessee under Section 68 of the Income-tax Act, 1961. 4. On appeal, learned CIT(A) did not agree with the above view of the Assessing Officer and held as under:- "5.2 In view of the above discussion, the addition of Rs.4,15,618/- being the appellant's share in the reserve u/s 80HHC in the books of M/s Jyoti Apparels which is transferred and credited to the capital....

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....073/- from the reserve of Rs.10,48,461/- a credit of Rs.2,33,758/- can only be allowed as transferred to the capital account. Therefore, the addition of Rs.10,48,461/- is restricted to Rs.8,14,073/-, which means the appellant gets relief of Rs.2,33,758/-." 5. The Revenue is not in appeal against the part relief allowed by the learned CIT(A). At the time of hearing before us, it is stated by the....

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....f Section 80HHC as it existed in the year 1985, to the capital account. By transfer of such reserve to the capital account, there cannot be any income unless the provision of Section 80HHC so provides. Admittedly, there is no provision in Section 80HHC prohibiting the transfer of reserve so created to the capital account. In view of the above, we agree with the learned CIT(A) that by transfer of r....