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2020 (1) TMI 475 - AT - Income TaxAddition on account of on-money receipts by the assessee on the basis of the statements recorded on oath u/s 131 of the buyers of the residential units - contention of the assessee inasmuch as the statement of a few buyers of the residential units cannot be extrapolated for considering the treatment of on-money receipts by the assessee - HELD THAT:- Hon’ble Gujarat High Court in the case of CIT V. Ashland Corporation [1981 (7) TMI 57 - GUJARAT HIGH COURT] and in CIT v. Motilal C Patel & Company [1988 (4) TMI 36 - GUJARAT HIGH COURT] held that it is settled law that no addition no addition can be made purely based on statement recorded during survey. CIT (A) was justified in deleting the addition made on account of estimation of on-money. We observe that decision of Calcutta High Court in the case of Amal Kumar Chakraborty v. CIT [1992 (8) TMI 11 - CALCUTTA HIGH COURT] relied by the revenue is not applicable as in that case statement were relied However, in the case of on-money of ₹ 12 crores has been disclosed based on statement of units holder. Therefore, the receipt of on-money has been taxed and disclosed by the assessee. Further, where ratio of the Jurisdictional High Court have been applied wherein they have held that only profit embedded in on-money receipts is to be taxed and not the entire receipts. Hence, said decision has no application in the case of the assessee - Decided against revenue
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