2011 (12) TMI 526

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.... of Rs. 39,52,293/- made on account of setting off the loss from reading in commodities against business income. 2. On the facts and in the circumstances of the case, learned CIT (A) has erred in ignoring the fact that the loss being speculative in nature can only be set off against the profit of the speculative business income. 3. (a) The order of the CIT (A) is erroneous and not tenable in law and on facts. (b) The appellant craves leave to add, alter or amend any/all of the grounds of appeal before or during the course of the hearing of the appeal." 2. A search operation was carried out at the premises of the assessee including the group concerns. A survey was also conducted on 19-20th February, 2008 on various premises and g....

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....0,000/- thereby offering an additional income to the extent of Rs. 13,58,31,794/-. The said accretion formed part of the overall agreed income of Rs. 15 crore as offered voluntarily by the assessee after the survey. The balance amount of Rs. 1,41,68,206/- was offered directly in the computation of income to cover any deficiency or discrepancies or other investments/expenditure, etc. Thus, it was pleaded by the assessee that further disallowance of Rs. 39,52,293/- being less than the amount additionally offered for tax of Rs. 1,41,68,206 on account of there being no other discrepancy, should have been considered to be covered by the said additional addition and, therefore, the addition of Rs. 39,52,293/- was not called for. Such submissions ....

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....discrepancy, hence, no addition could be made to the income of the assessee. 5. We have carefully considered the rival submissions in the light of the material placed before us. Copy of the computation of income has been filed by the assessee at page 55 of the paper book in which the assessee has declared "additional business income" of Rs. 1,41,68,206/-. We have also carefully gone through the letter filed by the assessee dated 3rd March, 2008 vide which the offer for additional income of Rs. 15 crore was made. We have also carefully gone through the assessment order. The Assessing Officer has not pointed out any other discrepancy in any of the documents found at the time of survey. The assessee, in order to make its offer an honest ....