TaxTMI 
TaxTMI 
2006 (9) TMI 100
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....sed by Income-tax Appellate Tribunal, Amritsar Bench, Amritsar in I.T.A. No. 343/ASR/2001 for the assessment year 1999-2000, proposing following substantial questions of law : "(i) Whether in the facts and circumstances of the present case the action of the authorities below in restricting the deduction under section 80HHC of the Income Tax Act, 1961 on its own presumption, is legally sustainable....
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.... cent. was reflected as against the gross profit of 45.12 per cent. on sales of Rs.1.06 crores in the last year. At the time of survey on March 20, 1999, the survey party found that the stock physically available at the premises of the assessee was excess by Rs.11,97,809/- as compared to the stocks reflected in the books of accounts. In order to cover the above discrepancy, the assessee offered to....
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.... survey as the same is not export income and does not fulfil the conditions under section 80HHC of the Act. The assessee in his reply dated December 5, 2000 submitted that the surrender of Rs.12 lakhs made by him over and above his normal business income represents business income since this is on account of stock surrendered during survey operations at the business premises on February 30, 1999. ....
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....unal noticed that the assessee failed to offer any explanation for the difference in the stocks and in such a situation, the assessee was not eligible to claim deduction under Section 80HHC of the Act without showing facts necessary for claiming the said deduction. 5. The only contention raised by learned counsel for the assessee is that once the assessee had surrendered the amount as business in....