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2016 (3) TMI 1418 - AT - Income TaxAddition u/s 68, 69 and 69C - assessee failed to offer an explanation regarding the source credited in its Books of account as WIP - during the course of Survey u/s.133A of the I.T.Act on 13.03.2008, the partners of the assessee firm accepted ₹ 3,00,00,000/- as the receipt of the firm from undisclosed sources - As per AO unaccounted income offered by the assessee during the course of survey, no expenses can be claimed in any manner whatsoever, viz. by debiting corresponding expenses account and transferring it to work-in-progress account as done by the assessee - CIT-A deleted the addition - HELD THAT:- Both types of receipts, i.e. receipt through cheques and receipt through cash as “on-money” will arise as income to the assessee as soon as transfer of immovable property is executed and not before, or possession thereof is handed over and for this it is necessary that such immovable property should be in existence. Therefore, the Coordinate Bench in the case of M/s. D.R. Construction [2011 (4) TMI 1343 - ITAT AHMEDABAD] was of the considered view that “on-money” received by the assessee did not have the character of income but was only an advance like the one received through cheque. Both will become part of the sale consideration to the assessee simultaneously on either handling over the possession of the flats or on execution of transfer-deed whichever happens earlier. In the instant case, during the course of survey, the partners of the assessee-firm had stated that the amounts so disclosed was the business receipts. The Revenue has not brought on record any contrary material to controvert such statement. - Decided against revenue.
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