2022 (1) TMI 477 - ITAT JAIPUR - Income Tax

Head Note / Extract:
Addition of on-money received on sale of shops in the JEM Complex - evidence of “On- money” found of cloud data - CIT-A deleted the addition - AR submitted that in search of the assessee, no document or material was found to indicate that the assessee has received any ‘on money’ on sale of the shops/office at JEM Project and addition has been made on the basis of the alleged tally data found from the premises of MBDL - HELD THAT:- We find that pursuant to search action in case of M/s Manglam Group and where the assessee’s premises were also searched, the action was taken in the hands of the assessee u/s 153A of the Act based on transactions in “N Trading Company” found on cloud data found and seized during the course of search at the office premises of M/s MBDL and the assessment was completed u/s 143(3) r/w 153A wherein addition on account of “on money” found in N Trading Company cloud data relating to JEM project were made by the Assessing officer. On appeal by the assessee, CIT(A), while adjudicating the merits of the case and which are under challenge before us, has again recorded a similar findings, as recorded by the Coordinate Benches in SHRI JUGAL KISHORE GARG (DEREWALA) [2021 (5) TMI 814 - ITAT JAIPUR], that M/s Manglam Builder & Developer Ltd had owned up all the “N Trading Company” data found in cloud as belonging to them and basis the same, it filed settlement petition before Settlement Commission on 28.03.2018 and the “On money” receipts relating to various real estate projects Pertaining to JEM project has been declared by MBDL and after considering the expenditure incurred, MBDL has offered additional income of ₹ 72.32 cr before the Settlement Commission and which has been accepted by the Settlement Commission in its order dated 16.05.2019 and accordingly, where “on-money” received in JEM project belong to MBDL and MBDL has offered the same which has been accepted and no evidence was found in search to indicate that the appellant has received any share in “on-money”, the AO was directed to delete the additions in the hands of the assessee. We therefore find that the facts of the aforesaid case are pari-materia arising out of same search action on M/s Manglam Group and same set of data in form of “N trading Company” found in cloud data which has formed the basis of addition in the aforesaid case and the matter has already been examined by the Coordinate Jaipur Benches basis the filings and acceptance of MBDL’s petition before the Settlement Commission and the addition has been deleted. The Revenue has not been able to highlight and demonstrate before us as to how the findings of the Coordinate Benches should not be followed in the instant case. Addition so made in the hands of the assessee is hereby held to be rightly deleted by the ld CIT(A) and we hereby affirm his findings in this regard and the grounds of appeal so taken by the Revenue are thus dismissed.