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2022 (3) TMI 724 - HC - Income TaxEstimation of profit embedded in the total unaccounted on money receipts from real estate business of the assessee - CIT(A) did not approve the AO’s estimate of the figure of ‘on money’ based merely on the two statements of the buyers - HELD THAT:- AO estimated the figure 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 CIT(A) independently examined the statement of both these two flat buyers, 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. 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. We should not disturb the order passed by the Appellate Tribunal dismissing the Appeal filed by the Revenue thereby affirming the findings recorded by the CIT(A).
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