COMMISSIONER OF INCOME TAX Vs. CHHABRA EMPORIUM

JUDGEMENT

(1.) THIS appeal by the Revenue under S. 260A of the IT Act, 1961 (for short 'the Act'), is directed against order dt. 28 Dec., 2001 passed by the Tribunal, New Delhi in IA No. 6468/Del/95 pertaining to the asst. yr. 1992-93, affirming the order passed by the CIT(A), New Delhi. The CIT (A) has deleted the penalty levied on the assessee under s. 271(1)(c) of the Act.

(2.) BRIEFLY stating the background, facts are that a search under S. 132 of the Act was conducted at the residential premises of Sudesh Chhabra, one of the partner of the Respondent/Assessee. During the course of this search, a diary was found and seized. In his statement, recorded under S. 132(4) of the act, the said Sudesh Chhabra stated that the diary reflected unaccounted transaction in respect of M/s Chhabra Emporium, the Respondent herein, M/s Chhabra Trading Co., M/s Chhabra Saree Sadan & M/s Chhabra Silk & Saree, for the asst. yr. 1991-92. He accordingly made a discloser of Rs. 30,00,000 on account of unexplained stocks in different firms. An amount of Rs. 8,00,000 was disclosed in respect of the present assessee.

(3.) WE have heard Mr. R.D. Jolly, learned senior standing counsel for the Revenue. Strenuously urged by Mr. Jolly that alleged surrendered by the assessee during the course of search on 22nd July, 1992 cannot be that the assessee is not entitled to claim the benefit of the afore-noted explanation in as much as the surrender on behalf of the assessee of the afore-noted amount was after the deduction of concealed income by the search party.