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2014 (11) TMI 810 - HC - Income TaxTaxability of enture undisclosed receipt or income imbedded into it - Validity of admission of new plea – Discharge of onus - Whether the ITAT was justified in law in admitting a new plea contrary to the facts on record that the net profit in respect of supervision charges should be linked to the receipts of booking of flats contrary to the provisions of Rule 29 read with rule 10 of the Appellate Tribunal Rules and whether the assessee has received unaccounted receipts was justified in law in holding that the AO has to discharge onus in respect of on-money by showing that assessee has invested ₹ 1,58,59,400 out of such receipts whereas claim of assessee for extra expenditure was found to be incorrect – Held that:- In Commissioner of Income Tax vs. Gurubachhan Singh J. Juneja [2008 (2) TMI 177 - GUJARAT HIGH COURT] it has been held that in absence of any material on record to show that there was any unexplained investment made by the assessee which was reflected by the undisclosed sales. Following the decision in DY. CIT (ASSTT) Versus PANNA CORPORATION [2014 (11) TMI 797 - GUJARAT HIGH COURT] - The Tribunal rightly held that the entire sales could not have been added as income of the assessee, but only to the extent the estimated profits embedded in the sales for which the net profit rate was adopted entailing addition of income on the suppressed amount of sales - unless there is a finding to the effect that investment by way of incurring the cost in acquiring the goods which have been sold has been made by the assessee and that has also not been disclosed, such addition could not be sustained - not the entire receipts, but the profit element embedded in such receipts can be brought to tax and no interference is required to be made in the decision of the Tribunal accepting such element of profit out of total undisclosed receipt – the order of the Tribunal is upheld – Decided against revenue.
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