- (1.) This judgment will dispose of IT Ref. Nos. 78 and 79 of 1988 arising out of ITA No. 269/Asr/1986 and ITA No. 270/Asr/1986 for the assessment year 1982-83 as the common question of law and facts is involved in both the references.
(2.) Brief facts giving rise to this reference are as under: A survey was conducted under Section 133A on the business premises of the assessee firm on 16-7-1982. During the course of survey proceedings, the books of account of the assessee and other documents were seized and as per Letter No. 1886 dated 19-7-1982 addressed to the CIT, Jalandhar through the Inspecting Assistant Commissioner, Bhatinda Range, Bhatinda it had been reported by the then Income Tax Officer, B-Ward, Bhatinda, who conducted the survey, that during the survey operation certain excess stock was found and the assessee surrendered a sum of Rs. 55,000 on account of value of excess stock as compared to that of available as per books of account as income for the financial year 1981-82 relevant to the assessment year 1982-83 voluntarily subject to no penalty under Section 271(1)(c).
(3.) However, later the assessee filed returns disclosing lesser income as per their books and submitted letters stating that the additions of the above amounts had been agreed to by them under pressure, harassment and undue influence and the assessee had never surrendered any amount at the time of survey or at any other time. In support thereof, they swore their affidavits which were filed along with the letters in question.;