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2020 (5) TMI 584 - AT - Income TaxAssessment u/s. 153A - survey action u/s. 133A - HELD THAT:- In view of the uncontroverted and admitted statement given on behalf of the assessee u/s. 133A and the documents impounded during the survey, which were also virtually admitted by the assessee, there was no error in the order of the Tribunal in accepting the materials on record in order to arrive at an assessment. We cannot say that there was no search action u/s. 132 of the Income Tax Act so as to frame assessments u/s. 153A of the I.T. Act. The assessments were also based on material gathered during the course of survey u/s. 133A - See HOTEL MERIYA [2010 (5) TMI 556 - KERALA HIGH COURT] - we are inclined to dismiss this ground of the assessee. Unaccounted sale receipts in the form of cash - Estimating the collection of cash outside the books - HELD THAT:- We direct the Assessing Officer to give due credit towards cost of construction relating to the unaccounted sale receipts collected by the assessee which was included in the work in progress that was shown by the assessee in its balance sheet. With this observation, we remit the issue in dispute to the file of the Assessing Officer for limited purpose of re-quantification of the addition in respect of unaccounted cash receipts unearthed by the Department during the course of search/survey action. The Assessing Officer is directed to compare the above cost of construction with the work in progress shown by the assessee in its balance sheet. Total work in progress shown by the assessee in its books of accounts in each assessment year is to be apportioned between accounted collections and unaccounted collections in their respective ratio so as to arrive at correct undisclosed income of assessee for each assessment year. The resultant figure would be the undisclosed income of the assessee for each assessment year and there is no question of taking any percentage of it as income of assessee as argued by ld. AR. assessee is only entitled for proportionate deduction towards cost of construction and accordingly AO has to recompute the unaccounted income for all three Assessment Years after giving an opportunity of hearing to the assessee. It is needless to say that the addition made by the Assessing Officer herein is not u/s. 69 or 69A of the I.T. Act. It is with reference to the unaccounted sale receipts which is part of the assessee’s turnover. Being so, the restriction imposed u/s. 69 or 69A of the I.T. Act with regard to granting of deduction towards expenditure does not apply.
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