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2019 (7) TMI 663 - AT - Income TaxUnaccounted labour payments in cash - search proceedings - assessee in his statement submitted that the said unaccounted cash payments were to the tune of ₹ 8.70 Crores which were received in cash from Runwal Developers Ltd. - assessee alternatively pleaded before the CIT(A) that he being a Civil Contractor may be taxed at the rate of 8% of ₹ 8.70 Crores - CIT(A) taxed @16% based on profit of earlier years - HELD THAT:- Assessing Officer of Runwal Developers Pvt. Ltd., had given a categorical finding that Runwal Developers Pvt. Ltd., had indeed made unaccounted cash payments of ₹ 8.70 Crores to the assessee. Hence, the order of the Department itself explains the source of ₹ 8.70 Crores for the assessee in respect of labour payments thereon by the assessee. Hence, there cannot be any addition that could be made in the hands of the assessee in the sum of ₹ 8.70 Crores in the facts and circumstances of the instant case. We also find that both the assessee as well as Runwal Developers Pvt. Ltd., were assessed by the same Assessing Officer and by the same Circle namely DCIT, Central Circle 4(1), Mumbai. Accordingly, we have no hesitation in directing the AO to delete the addition made in the sum of ₹ 8.70 Crores in the hands of the assessee. - Decided in favour of assessee.
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