TMI Blog2016 (6) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... tatement made during the course of survey proceedings. As noted hereinabove the assessee during the course of survey made the disclosure over a period of two years i.e. AY 2006-07 and 2007-08. In respect of assessment year 2007-08, the disclosure was made on the condition that the entire income would be disclosed if the assessee succeeded in the selling of flats and shops in that year. But if some stocks in the form of shops and flats remain to be sold then the same would be carried forward and the additional income qua those flats and shops as sold in the next year would be shown accordingly. Accordingly, the ld. CIT(A) further observed that the income of ₹ 90 lakhs was further spread over the period of 2 years and ₹ 35 lakhs w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was returned un-served due to incomplete address. Hence, we proceed to decide the appeal ex-parte on merits after perusing the records before us and hearing the ld DR. 3. Common issue raised in the all the grounds of appeal is with respect to the deletion of additions of ₹ 55 lakhs by the ld. CIT(A) which was added to the total income of the assessee by the AO on the ground that the assessee surrendered ₹ 90.00 Lacs during the course of survey, however while filing the return of income only disclosed ₹ 35 lakhs and hence short return by ₹ 55 lakhs. 4. The facts in brief are that the assessee filed its E-return of income on 31.10.2007 declaring a total income of ₹ 53,36,520/- which was processed under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made during survey submitted that this declaration will be for the completion and sale of the entire project but in the case the flats/shops remained unsold then the profit will be declared in the next assessment year because money for sale of flats was not received for each and every flat. Therefore, the AO while rejecting the contention of the assessee, framed the assessment vide order dated 24.12.2009 passed under section 143(3) at ₹ 1,08,36,520/- by making addition of ₹ 55 lakhs. The relevant part of the assessment order is reproduced below: Below the above declaration the assessee put an additional note that This declaration will be for the completion and sale of the entire project till the A.Y. 2007-08, but in the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side it is seen that the assessee has shown advances received against flats of ₹ 53,97,500/- During the survey action it was observed that the assessee was accepting on money of ₹ 300/- per square feet on and above the flat cost. If this aspect is considered the assessee has already received unrecorded on money in respect of booking of these flats. Because in the Builder business line on money factor is accepted in advance hence sale of flat is not the issue, receipt of money is the main issue. As the assessee has already in receipt of on money alongwith booking amount the question of sale of flat is not considerable issue. Considering the above facts the additional income as offered in letter filed on 20/11/2006 is considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 2007-08 and therefore some money for the flats was not received and therefore the income of ₹ 35 lakhs was credited in the books of the assessee as per the terms of declaration made by the assessee during the course of survey action. The First Appellate Authority has clearly observed in para 4.5 of his appeal order that the assessee has not retracted from the statement made during the course of survey proceedings. As noted hereinabove the assessee during the course of survey made the disclosure over a period of two years i.e. AY 2006-07 and 2007-08. In respect of assessment year 2007-08, the disclosure was made on the condition that the entire income would be disclosed if the assessee succeeded in the selling of flats an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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