TaxTMI 
TaxTMI 
2018 (1) TMI 1567
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....n was conducted in the group cases of the assessee on 3.2.2009. Subsequently, the A.O. has issued a notice u/s 153C of the Income Tax Act, 1961 (hereinafter called as 'the Act') on 3.3.2010 calling for the return of income and the assessee has filed the return of income on 23.4.2010 admitting total income of Rs. 63,920/-. Thereafter, the A.O. conducted the enquiries and completed the assessment u/s 143(3) r.w.s. 153C of the Act on total income of Rs. 11,69,338/-. During the assessment proceedings, the A.O. made addition of Rs. 11,05,418/- on estimation basis. During the search proceedings, the assessee has admitted additional income of Rs. 20 lakhs for the assessment year 2009-10 and accordingly, filed the return of income. The asse....
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.... that the DDIT has recorded the statement u/s 132(4) of the Act wherein the assessee has admitted the additional income of Rs. 20 lakhs u/s 132(4) of the Act and hence the assessing officer has rightly issued the notice u/s 153C of the Act for the assessment year 2008-09 it require to be upheld. 6. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. A search and seizure operation was conducted in the group cases of the assessee on 3.2.2009 and during the course of search, the assessee has admitted additional income of Rs. 20 lakhs for the assessment year 2009-10. There was no search carried out by Income Tax Department in the case of the assessee and there was no ....
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....aintained the books of accounts in paragraph No.4.3.7 which is extracted as under: "4.3.7 In the appellant's case, the A.O. has recorded that books of accounts were not available at the time of search. On the other hand, the appellant himself has stated that the books of accounts were presented during the course of assessment proceedings. What is relevant however is that the appellant prepared his books of accounts on percentage completion method and had them audited on 25.9.2008. The profit and loss account has been prepared on the basis of the same percentage completion method. This method is regularly employed by real estate developers and is in fact the preferred method of accounting as opposed to other methods, such as project compl....
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....ion of books of accounts based on incorrect entries recorded therein is upheld." 7. From the order of the Ld. CIT(A), it is evident that the assessee has maintained the books of accounts and followed the consistent method of project completion method. The CIT(A) also found that there is no basis for rejection of the method of account followed by the assessee. There is no incriminating material available to the revenue in the premises of the searched person relating to the assessee. The statement recorded u/s 132(4) of the Act related to the A.Y. 2009-10 but not related to the assessment year 2008-09. During the appeal hearing, the ld. D.R. did not place any evidence with regard to the incriminating material found in the premises of the se....