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2022 (3) TMI 1564 - AT - Income TaxOn-money receive on unit/flat sold - money receipts reflected in seized material found from the premises of the third party - difference between document price and the actual price received by the firm was not accounted for in the regular books of accounts - as per appellant if addition on on-money is required to be made it should be restricted to net profit on alleged on-money mentioned in the loose paper pertaining to few units sold by the Appellant Firm - HELD THAT:- AO has extrapolated on-money receipts of 41% of entire turnover which according to us is not sustainable on assumption and presumption basis particularly when the cheque receipts for two schemes is Rs. 3.24. crores as reflects from the loose papers as against gross receipts shown in the books of account from A.Y. 2010-11 to 2015- 16 for Rs. 53.32 croes. According to the Ld. AO similar material related to Pushkar Infrastructure was also found during the course of search at third party which proves that the appellant is taking on-money on all the units but such contention cannot be accepted as Pushkar Infrastructure is altogether a different entity and have no relevance on the appellant’s case. AO is only empowered to confine himself on the incriminating material found during the course of search and material is to be treated as true and correct. In our considered opinion, when the Revenue is in possession of the incriminating material wherein certain sales instances were found recorded in respect of specific amount of on money alleged to have been charged by the assessee on the sale of flats the AO should have made addition only in respect of those sales instances and not extrapolate the said amount of on-money merely on presumption on the entire sale. We find extrapolation of the entire income of appellant in all the assessment years based upon on-money receipts reflected in the loose paper pertaining to few units sold by the appellant is found to be unjustified and on that basis addition is required to be restricted only to the undisclosed income of the assessee to the tune of Rs. 1,81,72,500/- for Pushkar-III and 1,69,49,500/- for Pushkar-IV. Remaining addition deserves to be deleted - Appeal preferred by the Revenue is dismissed
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