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2014 (6) TMI 807 - AT - Income TaxEstimation of profit in real estate business – proceedings u/s 153BC - search and seizure operations - Held that:- the satisfaction of the assessing officer has to emerge from the material found during the course of search operation. - During the course of search in the premises of Jain Housing & Constructions Pvt Ltd, documents disclosing the receipt of 6.5 crores by assessee was found and seized. On the basis of this information, the assessing officer issued notice u/s 153C of the Act since the assessee is not the searched person. Therefore, the contention of the assessee that no material was found during the course of search operation is not correct. - Decided against the assessee. Filing of belated return in response to notice us/ 153C - Held that:- the belated return filed by the assessee after the expiry of the time limit for filing return of income given is also an information came to the knowledge of the assessing officer in the course of the assessment proceedings. Therefore, the information contained in such belated return can also be considered for completing the assessment. - the contention of the assessing that the assessing officer cannot act upon the belated return filed by the assessee on 19-08- 2009 has no merit at all. - Decided against the assessee. Estimation of profit - real estate business - assessee acted as aggregator of land for ETL Infrastructure Services Ltd and Jain Housing & Construction Co Pvt Ltd. - Held that:- Taking into consideration the total volume of transactions and the expenditure incurred by the assessee for development of land,etc. this Tribunal is of the considered opinion that estimating the net profit at 1.25% on the receipts from ETL Infrastructure Ltd would meet the ends of justice. - Decided partly in favor of assessee. Estimation of profit - in addition to acting as an agent / facilitator in purchasing the land has to fill up the land, construct compound wall, road, bridge, etc. - Held that:- Since the assessee has to carry out some developmental work on the land like construction of compound wall, bridge, etc. in addition to facilitating the purchase of land the profit ratio would be little more than that of acting a mere broker. The assessee is not a civil contractor. - CIT(A) has rightly taken into consideration all the material facts with regard to the nature of transaction and work undertaken by the assessee and righty restricted the profit at 5%. – Decided against the assessee.
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