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2023 (5) TMI 277 - ITAT VISAKHAPATNAMSuppression of receipts - Income from the additional works - Estimation of profit @ 8% by the Ld. CIT(A) as against the estimation of profit made by the Ld. AO @ 12.5% - only contention of the Revenue is that since the additional works are carried out through the employees of the assessee, therefore the Revenue considered it as diversion of turnover of the assessee - HELD THAT:- We find from the arguments put forth by the Ld. AR as well as the material placed before us, there are two different agreements entered into by various customers ie., one for the sale of flat and another agreement is for carrying out the additional works. It is also clearly demonstrated and established by the Ld. AR that the customers have directly made the payments to the contractors as per the additional works agreement. We find that since the customers have directly made the payments to the contractors for the additional works carried on by them and either the receipts or payments have not been passed through the assessee’s books of account, it cannot be considered as a turnover of the assessee. Therefore, considering the above facts and circumstances of the case, in our considered view, we are inclined to delete the addition made by the Ld. CIT(A) on the differential amount sold by the assessee and direct the Ld. AO to delete the addition partially sustained by the Ld. CIT(A).
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