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2020 (4) TMI 165 - AT - Income TaxAddition on Statement recorded during the course of survey u/s 133A - assessee itself has accepted the stand disclosed during the course of survey by partly admitting the income at ₹ 23 lakhs - HELD THAT:- Information and not conclusive evidence on the basis of which addition can be made. But in the present case, this statement is to be appreciated keeping in mind that certain papers and diaries inventorised as Annexure-4, 5 and 6 were found and seized. The assessee itself did not dispute disclosure made by it during the course of survey, and honoured to the extent of ₹ 23 lakhs. On the strength of Hon’ble Supreme Court decision in the case of S. Khader Khan Son [2013 (6) TMI 305 - SC ORDER] the assessee cannot pleaded that for want of sufficiency of evidence about the acceptance of on-money by it, addition cannot be made. There is sufficient evidence which has been agreed by the assessee itself confirming partly in the return of income. Therefore, we do not find any merit in the first fold of contentions. As far second fold of contentions on-money received on booking of the flats/houses would partake character of business receipts and would be treated equivalent to the amount which assessee had charged from ultimate purchasers of the house/flat. Profit embedded in such receipts deserves to be assessed to tax. The assessee has produced comparative chart showing the profit rate at 5.4% in the Asstt.Year 2010- 11 and 4.33% in the Asstt.Year 2011-12 on the total receipt it has received. The assessee has already disclosed a sum of ₹ 23,00,000/- which is 33.57% of the total disclosed amount of ₹ 68,50,000/-. Even if this amount of ₹ 68.50 lakhs is accounted for, then the profit element on this amount would come only to ₹ 3,07,565/- if rate of profit disclosed by the assessee in this year is applied to this receipt. The assessee has already offered more than this amount i.e. ₹ 23 lakhs. Therefore, no further addition is required to be made and accordingly addition of ₹ 45,50,000/- is deleted. Since we have accepted one of the alternative contentions, therefore, we need not to examine whether the partners are entitled for remuneration from the business profit, and interest on their capital contribution, because these claims were not made by the assessee in the return, rather pleaded only before the ld.CIT(A). No finding recorded by the ld.CIT(A) on this aspect. Therefore, his last alternative contention is rejected. We delete addition made by the AO. No other relief is being granted to the assessee.
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