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2014 (2) TMI 944 - AT - Income TaxNature of Income – Whether the income falls under any of the heads of income as described u/s 14 of the I.T. Act – Held that:- The income is nothing but unaccounted money received by the assessee from customers on account of sale of flats of its housing project, 'The Crest' at Pimple Saudagar, Pune - the source of the additional income is the sale of flats in the housing project, 'The Crest’ – thus, once the source of income is established the assessability has to follow - The nature of income has to be treated as 'business income' , the same was not accounted for in the account books. Deduction u/s 80IB(10) of the Act – Search conducted u/s 132(1) of the Act – Held that:- Having regard to the expression "all other provisions of this Act shall apply to the assessment made under this section" in Explanation (i) of section 153A of the Act, it clearly implies that in assessing or reassessing the 'total income' for the assessment years specified in section 153A(1)(b) of the Act, the import of section 80A(1) of the Act comes into play, and there shall be allowed the deductions specified in Chapter VIA of the Act, of course subject to fulfillment of the respective conditions - the phraseology of section 153A r.w. Explanation (i) does not support the premise arrived at by the CIT(A) – thus, the assessee's claim for deduction u/s 80IB(10) of the Act even with regard to the enhanced income was well within the scope and ambit of an assessment u/s 153A(1)(b) of the Act and the Assessing Officer was obligated to consider the same as per law. Factually, there is no material to negate the assertion of the assessee, which are borne out of the material on record, that the additional income in question has been received in the course of carrying on its business activity of developing the housing project, 'The Crest' at Pimple Saudagar, Pune, which is eligible for section 80IB(10) benefits – thus, Relying CIT vs. Sheth Developers (P) Ltd. [2012 (8) TMI 159 - BOMBAY HIGH COURT] the claim of the assessee is justified – thus, assessee is eligible for deduction u/s 80IB(10) of the Act in relation to additional income offered in a statement u/s 132(4) of the Act in the course of search and subsequently declared in the return filed in response to notice u/s 153A(1)(a) of the Act – Decided in favour of Assessee.
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