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TMI Blog2015 (8) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... me of survey which stands deleted by Ld. CIT(A). ITA.No.777/Hyd/2014 which is directed against the Order of Ld. CIT(A), Vijayawada dated 31.01.2014. 3. Grounds No. 1 and 7 raised by the Revenue in this appeal are general in nature which do not require any adjudication. Grounds No. 2 to 4 involve an issue relating to addition of Rs. 60 lakhs made by A.O. on the basis of statement given by assessee at the time of survey which stands deleted by Ld. CIT(A). 4. The material facts relevant to this issue are that assessee is a partnership firm which is engaged in the business as a builder. A survey under section 133A was carried out in its case on 25.08.2008. During the course of survey, certain books of accounts, documents and loose sheets were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sumed during the period from 1st April, 2008 to 25th August, 2008. As evident from the ROI filed the sales were only to an extent of Rs. 2,31,25,068/- and an amount of Rs. 20,81,256/- reported as profit which works out to 9% of the sales. In the light these facts and even after considering the information available from impounded materials, books of accounts and other relevant documents produced from time to time during the course of assessment proceedings there is no need in fact no scope to report/admit such a huge amount of Rs. 60,00,000/- in our return of income as additional income. As we have realized the status of sales by the last month of the F.Y. 2008-09, the same was intimated to the assessing officer and requested not to consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reas from 26.08.2008 to 31.3.2009 is 60,51,800/-. Thus, there is a clear downfall in the sales from 26.08.2008 to 31.3.2009. It is also noticed that the appellant admitted the net profit as per the P & L A/c. of Rs. 20,81,256/- which is 9%. If the amount of Rs. 60,00,000 is added to Rs. 20,81,256/- the profit would be Rs. 80,81,256/- against the sale of flats of Rs. 2,31,25,068/- which would give a rate of 34% which is unusually higher. I find that 9% net profit admitted by the appellant is reasonable and considering the case of the appellant, I feel that the addition of Rs. 60,00,000/- is not justified and accordingly deleted. This ground of appeal is decided in favour of the appellant." 5. We have heard the arguments of both the sides on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned D.R. has also not raised any material contention to dispute the relief allowed by the Ld. CIT(A) to the assessee on this issue, we uphold the impugned order of the Ld. CIT(A) on this issue. Grounds No. 2 to 4 of the Revenue are accordingly dismissed. 6. Grounds No. 5 and 6 involve an issue relating to the addition of Rs. 13,49,252 made by the A.O. under section 40A(3) on account of cash payments exceeding Rs. 20,000 made by the assessee, which stands deleted by the Ld. CIT(A). 6.1. On verification of the books of accounts of the assessee, the A.O. found that expenditure aggregating to Rs. 13,49,252 was incurred by the assessee involving items for which payments were made in cash exceeding Rs. 20,000. He, therefore, invoked the prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is regard, we set aside the order of the Ld. CIT(A) on this issue and restore the matter to the file of A.O. for deciding the same afresh, after verifying the stand of the assessee that the individual payments made in cash did not exceed Rs. 20,000 at a time. Grounds No. 5 and 6 of the Revenue's appeal are accordingly treated as allowed. 8. In the result, ITA.No.777/Hyd/2014 of the Revenue is partly allowed for statistical purposes. 9. Now, we shall take up the appeal of the Revenue being ITA.No.778/Hyd/2014 filed in the case of M/s. Srinilaya Projects which is directed against the Order of the Ld. CIT(A), Vijayawada dated 31.01.2014. 10. Grounds No. 1 and 7 are general in nature and therefore, do not require adjudication. 11. Grounds N ..... X X X X Extracts X X X X X X X X Extracts X X X X
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