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2022 (3) TMI 219 - ITAT MUMBAIEstimation of profit - Profit percentage @30% in respect of advances received from the project in earlier years - search and seizure action u/s. 132 - HELD THAT:- Revenue in the instant case has not doubted the profit percentage of 30% offered by the assessee for the year under consideration. The assessee has also not retracted the said offer of profit percentage @30%. But since projected receipts and actual receipts were substantially different, there was no occasion for the assessee to keep up its commitment given in the statement u/s. 132(4) - Hence, we are in complete agreement with the arguments advanced by the ld. AR in this regard. In view of the aforesaid observations, we have no hesitation in holding that the revenue had not made any case at all for taxing the opening balance of advances received against construction project as on 31/03/2012 by applying the differential profit percentage of 14% during the year under consideration. Accordingly, the ground No. 1 raised by the assessee is allowed. Chargeability of interest u/s. 234B and 234C of the Act which are consequential in nature. The law is now very well settled that interest u/s. 234C of the Act should be only on the returned income and not on the assessed income. Penalty u/s. 271(1)(c) of the Act which would be premature for adjudication at this stage and hence dismissed.
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