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2018 (4) TMI 558 - AT - Income TaxRevision u/s 263 - additional income out of the on-money component - identical sum as offered for taxation before the Assessing Officer was offered before the Settlement Commission - Held that:- Assessing Officer has not done any enquiry whatsoever. There is no material on record to show that the settlement commission’s order was there before him. The Assessing Officer has not enquired as to how the sum of ₹ 60,31,047/- was offered as against the larger amount offered at the time of survey. Moreover, as rightly been pointed out by the ld. Departmental Representative, for assessment year 2005-06, the Settlement Commission has accepted the plea that income out of on-money, should be considered @ 20.14% which is totally different from approx 12% rate offered in the present case for the assessment year. Hence, it is clear that by no stretch of imagination, it can be said that the Assessing Officer has made an application of mind on the issue at hand or that he had referred to the Settlement commission order. In these circumstances, in our considered opinion, acceptance of the return by the Assessing Officer at a figure of ₹ 60,31,047/- as against on money receipt of ₹ 1,65,62,330/- is erroneous so as to be prejudicial to the interest of the Revenue. CIT has observed that there are no details available about the unaccounted expenditure by the assessee in earning on money receipt - there is lack of clarity in the final direction given by the ld. Commissioner of Income Tax. The ld. Commissioner of Income Tax has directed the Assessing Officer to pass the order afresh after affording reasonable opportunity of being heard to the assessee and after taking into consideration the entire on-money receipt of ₹ 1,65,62,330/- as income by the assessee. Here we find that a confusion can arise as to whether the ld. Commissioner of Income Tax is directing that no opportunity should be given to the assessee to prove that the actual income out of ₹ 1,65,62,300/- is only ₹ 60,31,047/-. Hence, in order to remove any such ambiguity, we modify the order of the ld. Commissioner of Income Tax and direct that while considering on money receipt of ₹ 1,65,62,330/- it will be open to the assessee to prove by cogent means that the actual income out of it was only ₹ 60,31,047/-. - Appeal by the assessee stands partly allowed.
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