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2021 (4) TMI 667 - AT - Income TaxAddition on account of estimation of net taxable profit earned on the total 'on money' - difference in the sale price - AO made addition by assuming that during the survey, the partner of the firm stated that the project consists of 288 flats and 30 shops and booked 18 shops at 2000 per sq ft upper ground floor in Vaishnodevi Heights on the basis of statement of two flats buyers comparing to booking of the project calculated 'on money - CIT(A) held that no document proof 'on money' receipt was recovered from the possession of the firm of partner during the search/survey proceedings. The basic evidence on which the AO relied and made estimated figure of 'on money' are the statement of two buyers namely Shri Anand Gaur and Sudhirbhai Parikh recorded during the survey - HELD THAT:- CIT(A) after considering the submission of assessee, working of AO and the statement of parties held that there is no documentary evidence to substantiate, the receipt of 'on money'. No documents were recovered from the position of firm during the search or survey proceedings. The AO estimated the figures of 'on money' on the basis of statements of two buyers namely Shri Anand Gaur and Sudhirbhai Parikh, recorded during the survey. We have further noted that ld. CIT(A) independently examined the statement of both these two flat buyers, the ld. CIT(A) on examination of their statement held that both the parties stated about the rate of flat booking, payment terms, money paid from time to time both the buyers nowhere asked in the statement that they have made 'on money' payment. The statement of purchaser cannot alone prove that they were having any agreement with the assessee regarding any payment made outside books of accounts. The contention of assessee that both the buyers paid extra money for extra work agreement is also proved by proof of disbursal of bank loans as well as by extra work agreements. The ld. CIT(A) further noted that if the extra work doubted by search or survey party, no further investigation was made against those flats owners. The adoption of huge 'on money' without iota of evidence is not justified and deleted the entire addition. - Decided against revenue.
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