9911796707
TMI Blog2021 (2) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... plication is being filed upon directions of the Pr. Commissioner of Income Tax, Central-2, Mumbai. The application is being filed in relation to the following orders:- (a) ITAT Order dated 10.07.2019 in ITA No. 688/Mum/2018 and Cross Objection No.71/Mum/2019 (b) Corrigendum order dated 09.10.2019 in ITA No. 688/Mum/2018 and Cross Objection No.71/Mum/2019. 2. The brief background of facts is submitted as under:- (i) The scrutiny of the assessee's case for A.Y. 2015-16 was completed u/s 143(3), dated 30.12.2016 by making an addition of Rs. 8.70 crores as unexplained cash receipts being amounts received by assessee from Runwal Developers Pvt. Ltd. (ii) Upon appeal, the Ld.CIT(A) held, that on applying the gross profit rate of 16% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s basis for permitting the addition in respect of the sum of 8.70 crores and accordingly, adopted the rate of 16% as gross profit for the year under consideration and applied the sum of Rs. 8.70 crores and made an addition ofRs. 1,39,20,000/- thereon. " (v). It is also pertinent to refer to para 4 of the ITAT's order dated 10.07.2019 which is reproduced as under:- "4. Aggrieved, the assessee is in appeal before us ". (vi) In the background of the above observations, the Hon'ble ITAT has concluded in para 5.2 and para 6 as under :- "5.2 Accordingly, we have no hesitation in directing the Id.AO w delete the addition made in the sum of Rs. 8.70 crores in the hands of the assessee. 6. In the result, appeal of the Revenue is di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order took note of the aforesaid observation by stating that - ''we find in para 8.6 reproduced (supra) that the Assessing Officer of Runwal Developers Pvt.Ltd. had given a categorical finding that Runwal Developers Pvt. Ltd. had indeed made unaccounted cash payment of Rs. 8.70 crores to the assessee. Hence, the order of the department itself explains the source of Rs. 8.70 crores for the assessee in respect of labour payments thereon by the assessee. Hence, there cannot be any addition that could be made in the hands of the assessee in the sum of Rs. 8.70 crores in the facts and circumstances of the instant case ". 5. However, it is needs to be mentioned here that M/s. Runwal Developers Pvt. Ltd. had admitted on-money income for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal of the assessee and deleting the addition of Rs. 1,39,20,000/-, without discussing any reasons for disagreeing with the CIT(A), the order of the Hon'ble ITAT is ex-facie erroneous. 7. Further, it is found that M/s. Runwal Developers Pvt. Ltd. has not offered the entire amount of on-money as its unaccounted income. Further, in the case of the company, the addition made by the AO & confirmed by the Ld.CIT(A) has been contested by M/s. Runwal Developers Pvt. Ltd. and the same is pending before Hon'ble ITAT. As the issue of addition of on-money had not reached finality, the ITAT should not have considered the finding of AO of M/s. Runwal Developers Pvt. Ltd. as final and deleted the addition made in Himmatlal Gopal Patel Senghan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Rs. 8.70 Crores and assessee had preferred cross objection before us challenging the addition of Rs. 1,39,20,000/-. Hence, the entire addition of Rs. 8.70 Crores was in dispute before this Tribunal effectively. We find that main grievance of the revenue was that the Runwal Developers Pvt. Ltd., had not offered Rs. 8.70 Crores in its hands and that the Tribunal appeal was pending in their case while deciding the appeal by this Tribunal in the case of the assessee herein. We find that the ld. AR placed on record the copy of the Tribunal order in the case of Runwal Developers Pvt. Ltd, for A.Y.2015-16 in ITA No.5622/Mum/2017 dated 15/07/2020. We find that the Tribunal while disposing off the appeal in the case of Runwal Developers Pvt. Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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