S. 133A: No addition can be made on the basis of a surrender simplictor even if the surrender is during the course of s. 133A survey proceedings

ITO vs. Ram Prakash (ITAT Agra)

The issue raised is infructuous inasmuch as even if the surrender is in order but the addition was not warranted on merits, it is only elementary that merely because the assessee has, under misconception of facts or law, surrendered an income, no addition can be made in respect of the same. We have also noted that as evident from the observations of even the AO, there were no specific reasons for making the addition of Rs 10,00,000 save and except for the alleged surrender made by the assessee. The issue in appeal is also covered, in favour of the assessee, by a coordinate bench of this Tribunal in ACIT vs. Satya Narayan Agarwal (91 TTJ 481) wherein it is held that no addition can be made on the basis of a surrender simplictor even when surrender is made during the course of survey proceedings under section 133 A.