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2014 (12) TMI 674 - AT - Income TaxEstimation of book profits @ 8% on sale of plots and land Facts properly appreciated or not Held that:- During the course of survey, the assessee himself has disclosed in a statement that he has received on-money on the sale of plots which was not recorded in the books - where the accounts of assessee are rejected, the AO is duty bound to make a fair estimation of the profit - the AO while estimating the profit has not given any basis for arriving at the net profit @ 8% - the order of the AO is defective, therefore, the matter is remitted back to the AO for fresh adjudication Decided in favour of assessee. Addition of unaccounted expenditure u/s 69C - Failure to explain source of the expenditure Held that:- The assessment and enhancement of assessment has been framed on the basis of such statements coupled with material in the form of loose-papers collected during the course of survey - addition is made partly on the basis of the statement recorded during the course of survey proceedings - it is noticed that two statements of same person has been recorded, consisting of 18 questions and 22 questions respectively - there are glaring inconsistencies in two statements - only profit element embedded into the business receipt is to be taxed - additions cannot be made solely on the basis of survey statement - sale-deeds were executed in other years, therefore the authorities below were not justified in taxing the sale consideration in the years under consideration - there is no finding by the authorities below and no inquiry has been made as to when such properties were transferred to the respective buyers in terms of the provisions of Income Tax Act - actions of both the authorities below cannot be justified, however, there was no effective representation by the assessee and relevant information was not placed but the AO did not make further enquiry on the basis of material collected during the course of survey proceedings thus, the order of the CIT(A) is set aside and the matter is remitted back to the AO for fresh adjudication Decided in favour of assessee.
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