Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 235 - AT - Income TaxUnaccounted receipts - on-money received - Held that:- There is nothing on record to suggest that any material was found during the course of search evidencing on-money received for other bungalows. In such situation, the extrapolation method cannot be applied to the receipts of other bungalows. Further, the Assessing Officer was not justified in estimating the profit on "on money" receipts @ 25 %. This 25% estimation of profit on on-money receipts is purely on the basis of assumptions, surmises and conjectures. Thus, in our opinion, the CIT(A) was not justified in confirming the addition made by the Assessing Officer by estimating the profit on "on money" receipts @ 25% while the assessee has already offered tax on the admitted unaccounted receipts from its Greenwood Project amounting to ₹ 300 lakhs. Under these facts and circumstances of the case, the authorities below are not justified in making the addition in question and confirming the same; and therefore, the addition in question is directed to be deleted. - Decided in favour of assessee
|