CIT Vs. AKME PROJECTS LTD

JUDGEMENT

(1.) THIS is an appeal by the revenue against the order dated 28.12.2011 passed by the Income Tax Appellate Tribunal, New Delhi, in ITA No. 3276/Del/11 relating to the assessment year 2008-09. The appeal was admitted for hearing on 15.10.2012. The order indicates that the following question of law arises for consideration:-

(2.) AT the outset, the learned counsel for the respondent/assessee urged that the above question was not a question of law at all and much less a substantial question of law and that the same involved only issues of fact which had been finally determined by the Tribunal. However, the learned counsel for the appellant contended that a Bench of this court had already framed the above question and therefore the same needs to be answered.

(3.) THE argument of the revenue is that the sum of '. 39,52,293/- was by way of speculation loss and therefore the said amount had to be added back to the business income of the assessee. On the other hand the learned counsel for the respondent/assessee contended that the said sum of '. 39,52,293/- was already embedded in the additional business income which was offered by the respondent/ assessee which was to the extent of '.1,41,68,206/-. The Tribunal has examined this aspect of the matter in detail and observed that the assessee, in order to make its offer an honest attempt, apart from declaring the discrepancy pointed out, offered an additional sum of '. 1,41,68,206/- so as to complete the figure of '.15 crores which was the offer made at the time of survey. The Tribunal noted that the said amount of '. 1,41,68,206/- exceeded the amount of '. 39,52,293 added by the assessing officer. Consequently the Tribunal held as under:-