TaxTMI 
TaxTMI 
2024 (7) TMI 283
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.... (herein after referred as "Learned AO") on account of set off surrendered income was set aside. 2. Brief facts of the case are that search and seizure operation under section 132 of the Income Tax Act, 1961 (hereinafter referred to "the Act") was conducted on 3.11.2016 at the premises of the assessee comprising M/s. VVIP & SSG Group of cases. Assessee e-filed return of income on 30.10.2017 declaring total income of Rs. 30,35,380/-. Notice under section 143(2) of the Act was issued on 24.08.2018. Notice under section 142(1) of the Act along with questionnaire was issued. After completing the assessment Learned AO made addition of Rs. 1,80,00,00/- being the amounts surrendered by Shri Sachin Arora on behalf of the assessee. 3. Assessee pre....
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....ut considering the fact that the assessee has surrendered the amount of 1,80,00,000/- under the head 'Other Income'. 8. Learned representative for Department submitted that Learned CIT(A) had erred in stating that the assessee has suomoto written off an amount of Rs. 1,81,32,377/- as "Cessation of Creditors" as against Rs. 1,80,00,000/- surrendered by the assessee in his statement whereas the assessee in statement has never stated that it had written the said amount back in its books of account in view of Explanation 1 of section 41(1) of the Act. 9. Learned representative for assessee submitted that the AO has invoked the provisions of Section 115BBE of the Act with reference to Section 68 of the Act by stating that the assessee ....
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....e essential conditions of these sections are not fulfilled in case of this disclosure of income which has been made on account of cessation of liabilities of long standing Sundry Creditors. 11. Learned representative for assessee submitted that Hon'ble ITAT Delhi Benches in the case of ACIT vs. Shri Dhiraj Jain in ITA No. 1952/Del/2021 dated on 3rd April, 2024 held that:- "13. In our considered opinion, transaction reflected on the seized paper represents future contract of purchase and sale of gold and silver on various dates. Since the income has been accepted by the Assessing Officer, it can be safely presumed that the transactions recorded in the seized documents do not have any different character than that reflected on the seized p....