1994 (9) TMI 113

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

..... There was a search in the premises of the assessee-company which is engaged in the business of manufacture of iron and steel products. After the search, a settlement was arrived at by the assessee-company with the CIT in accordance with which the assessee offered to tax the excess amounts claimed towards burning loss. The total amount of income thus offered was Rs. 1,46,75,130 spread over a long period covering the assessment years 1976-77 to 1984-85. It is the contention of the assessee that this income was represented by certain assets outside its books, which were found out during the search. In the surtax assessments under consideration, the assessee claimed that the cumulative figures of extra profit in this way disclosed and offered....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....IT [1981] 132 ITR 559 in which the parameters for considering whether concerned amounts would constitute "reserve" had been discussed. The CIT(A) finally came to the conclusion that it was clear from the facts of the case that the assessee's contention was not to be accounted inasmuch as none of the conditions laid down by the Mysore High Court and the Supreme Court for inclusion of certain amounts within "reserve" was satisfied. Finally, the CIT(A) rejected the claim of the assessee. 4. A full fledged representation was made before us by Shri Venkatesan, learned counsel for the assessee on 2-8-1994. He strongly argued that since the amounts under consideration represented the secret profits of the assessee-company, they were required to....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... petition was moved on behalf of Shri Venkatesan asking for even further adjournment. This was not allowed in view of the fact that the appeals were rather old ones and were also stay-granted appeals. 6. On going through the facts of the case, we find that the assessee wants to take the opportunity of the disclosure made by it of excess claims of burning loss, consequent on the search and seizure proceedings in its premises. Certain amounts already claimed as expenses were declared by it to represent its concealed income and the same were also offered for taxation. No evidence was however led at any stage to show that, the socalled concealed income was retained in the business of the assessee in some form or other. Although the learned c....