2008 (5) TMI 141

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....i/2006. 2. Since the issues involved in these appeals are inter-related and arises from the common order of the Tribunal, both these appeals are being disposed of by this common judgment. For the sake of convenience facts are being extracted from ITA No.487 of 2007. 3. The assessee is an individual and engaged in the business of trading of iron and steel in the name of M/s Pankaj Sales Corporation. The assessee had filed the return declaring an income of Rs.1,28,285/-. The said return was processed under Section 143(1)(a) of the Act, 1961.  Subsequently, the Assessing Officer received an information from DDIT (Inv.), Ludhiana that the assessee had indulged in fictitious sale of goods to M/s Goyal Industries and received cheques a....

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....equired to be sustained out of the addition of Rs.14,95,000/-. Considering the totality of the facts and circumstances of the case and, in particular, the terms of surrender, we are of the considered view that no addition is justified on the basis of surrender made by deceased assessee's son. In this case, the nature of transactions was not known to the legal heirs of the deceased assessee. They had denied any wrong doing vis-a-vis their transactions with M/s Goyal Industries. So, however, sum of Rs.10 lacs was offered for taxation by Shri Sanjay Gupta son of the assessee to purchase peace of mind. If the Department had accepted the surrender made by the assessee and allowed peace of mind to the assessee on the basis of the decision of Punj....

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....High Court held that an order based on the agreement cannot give rise to grievance and the same cannot be agitated in an appeal. In the present case, the addition of Rs.14,95,000/- is based upon the statement of Shri Jatinder Kumar Prop. of M/s Goyal Industries. The terms of surrender were not accepted by the Assessing Officer in regard to offer of Rs.10 lacs for taxation.  The assessee was not allowed to buy peace or escape from litigation. The addition of Rs.14,95,000/- is thus deleted." 7. Aggrieved against the said order of the Tribunal, the revenue has filed the present appeal challenging the said decision of the Tribunal and has sought to raise the following substantial question of law:- "Whether on the facts and in law, th....