TMI Blog2013 (5) TMI 1002X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of Ld. CIT(A) in deleting addition of ₹ 7,48,150/- for A.Y.2003-04, ₹ 3,98,970 for A.Y. 2004-05 ₹ 1,38,750/- for A.Y. 2006-07 on account of on money receipts out of ₹ 8,95,300/-, 4,70, 970/- 1,66,500/- respectively. 4. Brief facts of the case are that assessing officer on examination of seized documents found that assessee had received on money of ₹ 16,46,970/- in these three years over and above the income disclosed during the course of search of over ₹ 2 crores. The assessing officer after considering the reply of the assessee taxed the gross receipt as income of the assessee in these three years and made the addition of ₹ 8,95,300/- during the assessment year 2003-04, ₹ 4,70,970 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsactions are also noted on page no.80 and 58 of Diary' 2005 (Page No. 1 to 149) respectively and same has been paid out of the on-money received and therefore no farther references is to be taken for any further action. Page No. 127 to 136 contains the particulars of amount paid to Aaj Architect towards drawing architect fees in respect of various projects carried out by the group of the assessee. The assesses has paid total amount of ₹ 7,05,963/- and it is not recorded in the books of accounts of which an amount of ₹ 1,85,000/- is repetition of transaction reflected on page no. 81 82 as explained above. Particulars of year-wise break up are as under: Page no. of seized material Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various residential housing scheme developed by assesses group. This expenditure is not recorded in regular books of accounts of the assesses group. The cop/ of Panchnama is enclosed. The Id A.O. has rejected the contention of the appellant and has treated the entire receipt as income on gross basis and made the addition as under: Assessment Year On-money received (Rs.) Profit in respect of on-money offered in return filed u/s 153(Rs.) Net Addition made to the returned income 2003-04 9,81,000 85,700 8,95,300 2004-05 4,80,970 10,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon ble Tribunal held that only 8 % of gross receipt could be taxed in the case of a builder out of the on-money. Reference to the Hon ble High Court was rejected and SLP against such rejection was also turned down as reported in 265 ITR 37 (St.) Considering the ratio of the decisions referred and consistently followed by the jurisdictional Tribunal in a large no of cases, the income returned by the appellant be directed to be accepted. 5. Ld. CIT(A) after taking into consideration of these submissions of the assessee gave relief to the assessee by observing as under:- 3.2 1 have carefully considered the submission of the Learned Counsel as well as gone through the assessment order. There is no dispute about the gross receipts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per seized record and the decisions of various Tribunals as relied upon by the Learned counsel, it is held that whole of the gross receipts of on-money cannot be taxed in the case of the assessee and only the reasonable profit earned can be taxed. The question thus remains as to what amount of profit is to be taken for taxation. The decisions relied upon are regarding taxing the profit from 3 per cent to 15 per cent of the gross receipts. However, I come across an unreported decision of the Jurisdictional Ahmedabad Tribunal in the case of Adinalh Construction decided vide order dated 21.10.2005 in ITA No, 1975 and 1976/Ahd /1999. In that case it was held that entire on- money did not represent the recipient s income but only to the extent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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