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2022 (4) TMI 1481 - AT - Income TaxAddition of total ‘on money’ received in cash - CIT-A estimating the profit @ 20% of "on-money" receipts - HELD THAT:- Keeping in view the binding judgement, the ld CIT(A) held that only certain percentage of ‘onmoney’ receipts should be taken as profit. Ongoing through the overall facts of the case and case laws cited, ld CIT(A) has considered it reasonable to determine 20% of ‘on-money’ as profit. Therefore, ld CIT(A) restricted addition to Rs.38,95,000/- ( being 20% of Rs. 1,94,75,000/-). Based on these facts and circumstances, we do not find any infirmity in the order of ld CIT(A), therefore, we are of the view that the order of CIT(A) is just and proper and calls for no interference. We therefore uphold the order of the CIT(A) and dismiss the appeal filed by the Revenue. Addition u/s. 68 r.w.s 115BBE - unexplained cash receipts - HELD THAT:- Section 68 states that where any sum is found credited in the books of an assessee maintained for any previous year and the assessee offers no explanation or explanation about the nature and source thereof or the explanation offered by him is found not satisfactory, the sum credited may be charged to income tax as the income of the assessee of that previous year. In this case, the director of the assessee company made disclosure on the basis of documents found and impounded during the course of survey, which is admitted the AO in the assessment order itself. The Director further stated that the income was earning from the project named Florence & Fiona. The income from that project has been assessed as business income. Therefore, the additional income credited by the assessee is from the business activities. The assessee has offered explanation and AO had not given any reason for finding it non-satisfactory. When the disclosure was based on documents found during the course of survey, additional income is disclosed on the basis of such documents and on such additional income was stated as earned from specific project, the assessee's explanation cannot be held as non-satisfactory. Therefore, ld CIT(A) observed that the findings of the AO considering the same u/s. 68 r.w.s 115BBE of the Act is not found justified. Set off of carried forward of losses on account of unabsorbed depreciation - as contended that it has carried forward unabsorbed depreciation of previous years, which was claimed in the return of income as per provisions of the Act but the same was not allowed by the AO - HELD THAT:- CIT(A) directed the AO to allow the carried forward unabsorbed depreciation to the assessee against the income of the current year. We note that ld CIT(A) passed a detailed and speaking order and we do not find any infirmity in his order. That being so, we decline to interfere with the order of Id. CIT(A) in deleting the aforesaid additions. His order on this addition is, therefore, upheld and the grounds of appeal of the Revenue are dismissed.
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