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2016 (5) TMI 235 - ITAT AHMEDABAD

2016 (5) TMI 235 - ITAT AHMEDABAD - TMI - Unaccounted receipts - on-money received - Held that:- There is nothing on record to suggest that any material was found during the course of search evidencing on-money received for other bungalows. In such situation, the extrapolation method cannot be applied to the receipts of other bungalows. Further, the Assessing Officer was not justified in estimating the profit on "on money" receipts @ 25 %. This 25% estimation of profit on on-money receipts is pu .....

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the same; and therefore, the addition in question is directed to be deleted. - Decided in favour of assessee - ITA No. 2918/Ahd/2011 - Dated:- 19-2-2016 - Shri Shailendra K. Yadav, Judicial Member And Shri N. K. Billaiya, Accountant Member For the Petitioner : Shri Milin Mehta, AR For the Respondent : Shri R.I Patel, CIT-DR ORDER Per Shailendra K. Yadav, Judicial Member This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-IV, Ahmedabad dated 05.09 .....

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hat no material was found during the course of search based on which the AO has computed the amount of on money. 3. The learned Commissioner of Income Tax (Appeals) erred in fact and in law in confirming the action of the AO in estimating the profit on "on money" receipts @ 25 % purely on the basis of assumptions, surmises and conjectures. 4. The learned Commissioner of Income Tax (Appeals) erred in fact and in law in confirming the action of AO in making the addition of ₹ 20,33, .....

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ating penalty proceedings u/s 271AAA of the Act. 9. Your Appellant craves the right to add to or alter, amend, substitute, delete or modify all or any of the above grounds of appeal. 2. The brief facts of the case are that the assessee is engaged in the business of construction and development in the field of real estate. The assessee has developed a housing project named "Greenwood" in the city of Baroda. The said project comprises of 26 Bungalows and the entire project consists of hi .....

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ows recorded in books at ₹ 1182.77 lakhs and, thereafter, estimated the profits @ 25% of the on-money receipts which came to ₹ 3,20,33,000/-. Since the assessee has already disclosed an amount of ₹ 300 lakhs on account of onmoney receipts in respect of Greenwood Project, a net addition of ₹ 20,33,000/- was made by the Assessing Officer to the total income of the assessee, which was confirmed by the CIT(A) in appeal. 2.1 In this regard, the stand of the assessee before us .....

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onjectures. The assessee contended that the Revenue Authorities were not justified in making the addition of ₹ 20,33,000/- to the total income of the assessee by estimating the profits @ 25% on on-money receipts while the assessee has disclosed an amount of ₹ 300 lakhs on account of on-money receipts in respect of Greenwood Project. He accordingly pleaded that the addition in question may be deleted. On the other hand, ld. Departmental Representative supported the order of the author .....

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