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2021 (7) TMI 1277 - AT - Income TaxAddition u/s 68 - On-money received by the assessee - addition being 25% of on money plus accommodation entries - determination of profit element on the on-money receipts which has to be brought to tax - HELD THAT:- As per M/S. TULIP LAND & DEVELOPERS P. LTD. VERSUS DY. CIT, CENTRAL CIRCLE-6 (2) , MUMBAI [2021 (2) TMI 1170 - ITAT MUMBAI] it is not in dispute that the assessee had incurred certain business expenses out of such on-money which are kept outside the books of accounts. Hence, it will be just and fair that only the profit element embedded on any such undisclosed transaction could be brought to tax on an estimated basis. The assessee had already pleaded that onmoney transactions were offered by the assessee’s group concerns @12% of on-money receipts before the Hon’ble Income Tax Settlement Commission and the same has been accepted by the Settlement Commission. Hence, the data and information was indeed available with the ld. CIT(A) to have some rational basis to make profit estimation in the hands of the assessee herein by following 12% thereof from the order of Hon’ble Income Tax Settlement Commission. Accordingly, we direct the ld. AO to add only 12% of on-money receipts as undisclosed income of the assessee for the year under consideration.
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