2016 (6) TMI 1510

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.... in holding that notice u/s 143(2) has been issued as per guidelines of the Hon'ble CBDT whereas as per explanation, the notice u/s 143(2) has been issued in violation of guidelines of the CBDT. As such, assessment framed on the basis of illegal notice is void abinitio and the same be cancelled. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in holding that the appellant has not brought on record the head under which the income was surrendered as undisclosed income without appreciating that as per surrender letter, income was surrenderd as income of the year over and above the normal income. As such, the surrendered income has to be treated as income from business or profession not as inco....

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....appellant company. The assessee appellant company has made a set off of this surrendered income against loss as per regular business of the assessee appellant computed on the basis of books of accounts as maintained. The learned AO has not made any addition in the income computed on the basis of books of accounts maintained but the learned AO has disallowed the claim of the assessee appellant by holding that set off of this surrendered income is not allowable against the normal loss as per books of accounts. During the appellate proceedings, the A/R of the assessee appellant has not brought any material on record to show that the surrender of income falls under any of the head of income under which the income has to be computed as per law. ....

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....olved in the present appeal are similar, as were decided by the Bench of the Tribunal, in the case of 'J.B. Resorts, Fazilka vs. Income Tax Officer, Abohar', passed in ITA No.488(Asr)/2015 for the assessment year 2011-12. The relevant findings given therein, are as under: "8. We have heard the parties and have perused the material available on record. Apropos the contention of the ld. DR that 'Gaurish Steels P. Limited' (supra), is per incuriam 'Kim Pharma P. Limited' (supra). These are one at one with the ld. DR. In 'Gaurish Steels P. Limited' (supra), the Tribunal has taken note of the fact that in 'Kim Pharma P. Limited' (supra), the only issue was taxability of the cash surrendered during the course of survey, which was also gi....

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....s business income. This included the receipts amounting to Rs. 3,44,000/- for the period from 10.10.2010 to 16.01.2011, as accounted for in the palace income of the assessee in the ledger. This income has been shown on account of letting out of the Marriage Palace for the period from 10.10.2010 to 16.01.2011. As such, as rightly contended. The AO has accepted this income of the assessee as business income. The profit & loss account of the assessee for the period from 04.02.2011 to 31.03.2011. shown Palace income by Rs. 4,65,000/-, the details of which are, as above. Therefore, the grievance of the assessee in this regard is correct and the same is accepted. 10. In keeping with 'Kim Pharma P. Limited' (supra), as relied on in 'Gauri....