Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 1150 - AT - Income TaxAssessment u/s 153A - Unexplained cash credits u/s 68 - whether incriminating material found during the course of search pertaining to investment made by various group members in share capital of the assessee company or receipt of cash/unaccounted money against sale of investments by the assessee company found? - HELD THAT:- Addition made u/s 68 cannot be upheld and are required to be deleted as no incriminating material found during the course of search. Further additions made by Ld. A.O. by estimating unexplained expenditure as required to be deleted and held that these additions are beyond the scope of AO passed u/s 153A of the Act and finally addition made u/s 68 and unexplained expenditure for both the Assessment Years were deleted. ‘On-money’ receipt - Whether same will be taxed in the year in which sales are recognized in the books of account and that too at the rate are 17.5% of the ‘On-money’ receipt? - HELD THAT:- As settled law that on-money is required to be taxed in the year in which amount received through cheque is taxed. Addition on account of 22 unsold units have been offered in the year of sale in subsequent years hence addition of the same cannot be made considering that the assessee has made any unaccounted sale of such units during A.Y. 2014-15. And further stated that similar units sold by other group cases being M/s. autocare Services, M/s. Sumangal Enterprise etc. which have filed Settlement Petition before Hon’ble Income Tax Settlement Commission, Mumbai has estimated net profit @ 17.5% being profit estimated on on-money as well as turnover shown in books of account. And further stated that it is settled legal law and entire on-money cannot be taxed but only profit embedded on alleged on-money can be taxed. Additions made for 51 units in AY 2014-15, the amount worked (subject to verification by the AO) out above for 30 units only remains for A.Y. 2014-15, the amount to be worked out for 18 units and 2 units as discussed before are to be taxed in A.Y. 2015-16 and A.Y. 2016-17 respectively and the amount to be worked out for remaining/unsold 1 unit is to be taxed in the year when it may be sold.
|