2008 (8) TMI 918

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.... in the circumstances of the case, additions made in the income of the assessee as income from the undisclosed sources can be considered as income from the business, which is eligible for deduction under s. 80-IA of the IT Act, 1961." 3. The necessary facts are that a survey was conducted on the business premises of the assessee, on 31st Dec., 1999, and according to the Department, excess stock, in the tune of Rs. 4,51,010 was found. The assessee did not object to this excess stock. Thereafter, the assessee filed return for the relevant previous year, on 31st Oct., 2000, which was selected for scrutiny, and notice under s. 143(2) was issued on 18th April, 2001, and onwards. The assessee, in the return has shown the total sales worth Rs. 5,....

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....he assessee is eligible for deduction, equal to 100 per cent of profits and gains from business, for ten consecutive assessment years, and that the AO did not consider this amount, to be eligible, for deduction, under s. 80-IA, without assigning any reason. Thus, the appeal was dismissed. 7. In our view, the question as framed on 22nd Aug., 2006, does not really, arise in the appeal. On the other hand, the question, that precisely arises is, as to whether addition could be made, with respect to the aforesaid amount, under s. 69 ? 8. Obviously, the assessee had filed regular return, and had disclosed therein a particular amount of sales, and had shown the GP, at the rate of 0.93 per cent. Obviously, the return was for the entire financial ....

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....ation offered by him is not, in the opinion of the AO, satisfactory, the value of the investments may be deemed to be the income of the assessee of such financial year." 10. A reading of above section makes it clear, that the basic condition, for attracting the provisions of s. 69 is, that the investments made in the financial year concerned, should not be recorded in the books of account, maintained by the assessee, for any source of income, and secondly, the assessee should have not offered any explanation, about the nature and sources of investments, or the explanation offered should not be satisfactory, in the opinion of the AO. 11. In the present case, the relevant financial year is 1999-2000, and in the books of accounts of that yea....