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2022 (12) TMI 932 - AT - Income TaxAddition u/s 68 - “on money receipts” - unexplained credit - Addition being the amount received in cash on booking of flat as per their seized diary - HELD THAT:- AO has not investigated the facts if the assessee returned part of cash component to Bhajiyawala Group or not nor verified if remaining of Rs. 21 lacs were offered in the subsequent year or not. AO has brought the entire amount to tax under section 68. So far as other alternative submissions of the assessee before assessing officer as well as submissions made before me, is that only the income component of such alleged on money may be considered for making additions and not the entire money. As find that division bench of this Tribunal while considering the similar issue for taxing the income component of on money in Enn Enn Corporation[2022 (4) TMI 1481 - ITAT SURAT] by following the decisions of Tribunal in other case sustained/ upheld the addition of 20% of alleged ‘on money’. However, no straight jacket formula can be applied in such case, therefore, direct the assessing officer to restrict the addition to the extent of 25% of Rs. 48 lacs. Ground of the appeal is partly allowed.
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