Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 1262 - AT - Income TaxUndisclosed income - assessee has earned on-money on sale of units in its project Pride Purple, which was not disclosed in the regular account books - HELD THAT:- On-money receipt reflected in the seized material on sale of unit to Mrs. Fatima Moiz Fakruddin & others, has been offered for taxation by the assessee. Therefore, nothing much can turn by adjudicating as to whether or not the notings on the seized paper no.56 of Bundle No.2 reflect receipt of on-money from Mrs. Fatima Moiz Fakruddin. So however, the dispute starts from the fact that the Assessing Officer has presumed on the basis of the said seized material that assessee must have earned on-money on sale of all the units sold in the project. Factually speaking, there is no dispute that other than page no.56 of Bundle No.2 and to some extent loose paper no.20, there is no other material seized or found in the course of search or otherwise, which would show that assessee has received on-money on sale of units in the impugned project. The Assessing Officer adopted the rate of ₹ 4,000/- per sq.ft., as reflected in seized paper no.56, and applied it to sales of all the units and computed the impugned addition. We do not find that the assessee has admitted to a modus operandi of receiving sale consideration outside the books of account. It is also emerging from record that the Revenue has also not led any credible and cogent material or evidence to demonstrate that any modus operandi of receiving sale consideration outside the account books was being carried out by the assessee regularly, except in relation to one instance of sale to Mrs. Fatima Moiz Fakruddin. Therefore, under these circumstances it would not be justified for the Revenue to extrapolate receipt of on-money for the sale of other units in the project and accordingly there is no justification for the addition made on this count. - Decided in favour of assessee.
|