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2019 (12) TMI 686 - ITAT VISAKHAPATNAMAddition in respect of receipt of on-money - HELD THAT:- It is undisputed fact that the assessee has received on money to the extent of ₹ 76,20,000/-. It is not clear neither from the order of the Assessing Officer nor from order of the ld.CIT(A) that this amount is received by the assessee over and above the sale consideration and in which mode. Therefore, we are of the opinion that the Assessing Officer cannot make the entire addition, only profit has to be estimated. Accordingly, we set aside the order of the ld. CIT(A) and remit the matter back to the Assessing Officer to consider the details filed by the assessee and decide the case in accordance with law. Thus, this ground of appeal raised by the assessee is allowed for statistical purpose. Estimation of profit - AO estimated the profit at 20%, which the ld. CIT(A) reduced to 16% - HELD THAT:- Assessee has submitted that the assessee is a small assessee and section 44AD applies to him and therefore estimation may be made at 8%. We find that this case is covered by section 44AD, hence, estimation of profit at 8% is sufficient to meet the ends of justice. Accordingly, the estimation is scaled down to 8%. Thus, this ground of appeal raised by the assessee is partly allowed. Unexplained investment in purchase of property - HELD THAT:- assessee has pointed out from the paper book at page No. 17 wherein the advance site at BS Layout 305 sq.yds. for an amount of ₹ 56.70 lakhs clearly mentioned in the balance sheet. Keeping in view of the disclosure made by the partner Sri Kotagri Suryanarayana Murthy, in our opinion the addition cannot be survived. Accordingly, the addition made by the Assessing Officer and confirmed by the ld. CIT(A) is deleted. Thus, this ground of appeal raised by the assessee is allowed. Addition u/sec. 40A(3) as the payment or aggregate payments were made to a person in a single day in cash - HELD THAT:- The case of the assessee is that once income of the assessee is estimated, no separate addition can be made on account of expenditure incurred by the assessee. It is further submitted that the alleged cash payments were made towards various works like brick centering, mason, concrete and transportation charges against representing the persons who have received the payment on behalf of the entire team of the workers. Thus, the assessee contended that payments cannot be treated as paid to a single person. We find that the assessee has not given any proper explanation in respect of source of expenditure to the tune of ₹ 34.73 lakhs before the Assessing Officer and even before the ld. CIT(A) also. Before us also no proper explanation is given. We find that Assessing Officer is justified in making the addition. Undisclosed contract receipts - HELD THAT:- assessee filed return of income on 15/04/2017 disclosing gross receipts of ₹ 4,63,50,000/- whereas information gathered u/sec. 133(6) of the Act, it was found that assessee has executed total contract of ₹ 4,66,93,000/-, thereby there is undisclosed income of ₹ 3,43,000/- (₹ 4,66,93,000 – ₹ 4,63,50,000). The same discrepancy was apprised to the assessee vide this office show cause dated 02/11/2017, but failed to submit any explanation, therefore the Assessing Officer has made the addition of ₹ 3,43,000/- in the hands of the assessee. Even before the ld.CIT(A) no explanation is given. Even before us no satisfactory explanation is offered, therefore we find no reason to interfere with the order passed by the ld.CIT(A). Thus, this ground of appeal raised by the assessee is dismissed.
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