S.K. TRADERS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) TRIBUNAL , Chandigarh Bench, passed in ITA No. 281/Chd/1998 in respect of asst. yr. 1995 -96.

(2.) THE assessee derives income from manufacture and sale of rice and its by -product. During search at the premises of M/s Partap Bhangu Solvex (P) Ltd., village Pasiana, a diary containing the details of rice bran purchased by that company from various persons including the appellant was seized. In the said diary there were entries pertaining to correctness of said entries and surrendered a sum of Rs. 7.50 lacs as undisclosed income subject to no penalty and no prosecution. The basis of surrender by the assessee was under -billing in the rates of by -products and sale of the by - products outside the books of account. Accordingly, the amount surrendered was taxed as undisclosed income. The addition was deleted by CIT(A) but the Tribunal restored the same. It observed :

(3.) THE appeal was admitted to consider following substantial question of law claimed by the assessee :