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2015 (1) TMI 1498 - AT - Income TaxOn money receipts - NP Estimation - rejection of books of accounts - AO applied net profit rate of 16% - CIT(A) restricted the net profit @ 15% and deleted the addition - HELD THAT:- Books of accounts maintained by assessee were not proper and not reliable as complete receipts were not shown. Assessee himself admitted receipt of on money and disclosed an amount as unaccounted income on this account. The statement recorded of one purchaser confirmed the fact that assessee was getting on money. AO was justified in rejecting books of accounts. Estimation of on money done by AO was not found correct by CIT(A) as figures of on money received in one flat from an NRI buyer cannot be the basis for holding that same on money was received by assessee for all flats and also from the partner to whom 11 flats were given. Net profit rate of 16% applied by Assessing Officer was not found justified by CIT(A). Drawing the strength from various judicial pronouncements of ITAT Bench, CIT(A) observed that assessee has shown net profit of Rs. 2,00,00,000/- and for this net profit @ 15%, corresponding on money comes to Rs. 13,33,00,000/-.as against on money estimated by AO at Rs. 15,56,12,400/- (including flats given to partner with on-money). He took out the flats given to partner, profit shown by assessee of Rs.2,00,00,000/- was more than the reasonable amount of net profit received on balance flats. Accordingly, addition in question was deleted. This reasoned factual finding of CIT(A) needs no interference from our side. Appeal filed by Revenue is dismissed.
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