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2020 (9) TMI 973 - HC - Income TaxBusiness income receipt of On Money received out of books of account - Addition on the basis of the extrapolation of the clinching evidences seized/impounded which has the part of cash and cheque payments receipts in respect of Anupam Square project of the Assessee Group - statement on oath u/s.132(4 ) - HELD THAT:- Question are no longer res integra in view of the order passed in PANNA CORPORATION [2014 (11) TMI 797 - GUJARAT HIGH COURT] held Tribunal was justified in considering that the respondent– assessee ought to have spent reasonable amount for the purpose of receiving such gross receipt. As seen consistently, this Court and some other Courts have been following the principle that even upon detection of on money receipt or unaccounted cash receipt, what can be brought to tax is the profit embedded in such receipts and not the entire receipts themselves. If that be the legal position, what should be estimated as a reasonable profit out of such receipts, must bear an element of estimation. Not the entire receipts, but the profit element embedded in such receipts can be brought to tax, in our view, no interference is called for in the decision of the Tribunal accepting such element of profit at ₹ 26 lakhs out of total undisclosed receipt of ₹ 62 lakhs. We accept the legal proposition, the Tribunal accepting ₹ 26 lakhs disclosed by the assessee as profit out of total undisclosed receipt of ₹ 62 lakhs, would not give rise to any question of law.
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