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2014 (3) TMI 929 - AT - Income TaxAddition made Valid explanation for sources of investment not made Held that:- CIT(A) was of the view that the assessee explained usage of receipt which was used for payment to the landlords - the assessee has not explained the sources from whom he had received and the purpose for which it was received - In the absence of source and nature of expenditure, the receipt is to be considered as trading receipt and income on this is to be estimated, as the assessee estimated on other receipts, at 25% - Decided partly in favour of Revenue. Addition made u/s 69A of the Act Held that:- The observation of the CIT(A) is not proper - When the amount is included in Form No. 26AS the CIT(A) is not proper to hold that the assessee received the amount from M/s. Jana Chaitanya Housing Ltd., and paid to the landlords and the assessee acted only as an agent - It is the mobilisation advance given to the assessee which is liable for TDS towards land development expenditure - When the assessee undertakes the land development, it cannot be said that the assessee carried out the work without element of profit - as it is a regular work carried on by the assessee, applying net profit rate as adopted by the assessee on regular trading receipts, the AO is directed to adopt 25% of the receipt as income of the assessee Decided partly in favour of Revenue.
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