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2014 (7) TMI 420 - ITAT MUMBAIDeletion of addition made during search - The assessee is a partnership firm falling within “M/s Pathnik Constructions Group” and is engaged in the business of building construction and development – Held that:- The addition of ₹ 1,44,36,000/- was made by the AO on the basis of the incriminating document found at the residence of Shri Ramesh Nakrani - The question about the entries found noted in the document was asked to him only and he has only decoded the coded entries found - the aggregate amount of consideration noted in that document was found to be ₹ 3,42,63,000/-, yet the AO accepted the deposition made by Shri Ramesh Nakrani that the actual consideration was ₹ 309.36 crores - the explanation about the land deal and involvement of on money payment have been admitted by Shri Ramesh Nakrani only - The incriminating document was also found at his residence only - Shri Ramesh Nakrani has admitted that the cash portion amount (on money) was paid by him only. The profit sharing ratio of each partner, which is RKN-50%, RDN-30% and PVP-20% and the investments were made in that ratio - there is no reason to doubt his statement that the unaccounted amount was contributed by him out of his undisclosed sources - all the documents proves the contention of the assessee that the unaccounted payment involved in the land deal was financed to the extent of ₹ 1.00 crore by the undisclosed income declared by Shri Ramesh Nakrani in his hands - there was no reason to reject the submissions of the assessee firm that the unaccounted portion involved in the land deal was met out of undisclosed income delared by Shri Ramesh Nakrani - the assessee has explained the sources for making payment to the extent of ₹ 1.00 crore in respect of the land deal - CIT(A) was justified in giving credit of ₹ 1.00 crore against the addition of ₹ 1,44,36,000/- made by the AO. There should not be any doubt that the suppressed amount of consideration should be arrived at by comparing the actual consideration with the accounted consideration - the AO has adopted the figure of ₹ 1,65,00,000/- as accounted consideration and accordingly computed the suppressed amount - the claim of the assessee is admissible under Rule 27 of Appellate Tribunal Rules, 1963 – the contention related to computation of unaccounted income only - the contentions require factual verification at the end of the AO - Decided against Revenue.
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