Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 420 - AT - Income TaxAddition as income from on money - Year of assessment - addition based on seized material emanating out of the search - CIT(A) holding that the cash received by the assessee was in the nature of business receipt and could not be treated as income u/s.68 - whether CIT(A) erred in restricting the disallowance @25% of the cash received when no evidence of expenditure of balance 75% of the cash was produced by the assessee and therefore genuineness and allowability of the same could not be examined? - HELD THAT:- As decided in M/S. TULIP LAND & DEVELOPERS P. LTD. VERSUS DY. CIT, CENTRAL CIRCLE-6 (2) , MUMBAI [2021 (2) TMI 1170 - ITAT MUMBAI]as duly mentioned by the ld. AO in the remand report and merely because PAN was not mentioned and the confirmation from those parties for making payment of on-money to the assessee was not available, the ld. AO had not accepted to the contentions of the assessee in the remand report. CIT(A) on these facts and circumstances accepted to the plea that the on-money receipts should get taxed only as business receipt of the assessee as it is admittedly received from the sale of flats to various parties by the assessee and thereafter, proceeded to estimate the profit element thereon @25% as against 100% adopted by the ld. AO. While doing so, we find that the ld. CIT(A) had categorically stated that the provisions of Section 68 cannot be made applicable to the said on-money receipt. Since the nature and source of credit being on- money receipt received from sale of flats had been duly accepted by the ld.AO in the remand report, the same would construe only business receipt and not cash credit u/s.68 of the Act and accordingly, the ground No.1 raised by the Revenue for both the years on this limited aspect, deserves to be dismissed.t. Addition equal to 25% of the on money received - At what rate of the on money should be brought to tax? - Following Tribunal case in the sister concern cases of the assessee group [2021 (2) TMI 1095 - ITAT MUMBAI] on identical facts and circumstances emanating out of the same seized material and same search, we direct the ld. AO to add only 12% of the on-money receipts as undisclosed income of the assessee. Accordingly, the grounds raised by the Revenue are dismissed and the grounds raised by the assessee are partly allowed.
|