TMI Blog2021 (2) TMI 1095X X X X Extracts X X X X X X X X Extracts X X X X ..... it element, which has been already accepted by the Hon ble Income Tax Settlement Commission at 12% vide its order dated 28/06/2018 in assessee s group company cases. CIT(A) ought to have followed the same in view of identical facts in the assessee herein also. Accordingly, we direct the ld. AO to make an addition @12% of inflation of expenses for the relevant assessment year in line with the direction of the Hon ble Income Tax Settlement Commission in assessee s group company cases. Addition towards on-money - addition u/s.68 towards on-money received by the assessee for sale of flats - HELD THAT:- It is not in dispute that the assessee had incurred certain business expenses out of such on-money which are kept outside the books of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. Dy. Commissioner of Income Tax, Central Circle 6(2), Mumbai (hereinafter referred to as ld. AO). Since identical issues are involved in both the appeals, these appeals are taken up together and disposed off by this common order for the sake of convenience. 2. The first identical issue to be decided is as to whether the ld. CIT(A) was justified in confirming the addition of ₹ 5,34,819/- as income from inflation of expenses in the facts and circumstances of the case for the A.Y.2013-14. 3. None appeared on behalf of the assessee. We have heard the ld. DR and perused the material available on record. We find that the search operation u/s.132 of the Act was conducted in the Ahuja group of cases on 25/06/2015 and certain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds inflation of expenses could be made on mere allegation of suspicion. However, on without prejudice basis, the assessee submitted that 8% of such expenditure could be added as undisclosed income of the assessee. We find that the ld. AO had rebutted this plea of the assessee by stating that the fact of maintaining parallel books of accounts was accepted by the assessee s group even before the Hon ble Income Tax Settlement Commission and 12% of the expenditure was offered as income. The ld. AO also observed that the fact of handing over of all the seized documents was also accepted by the assessee s group before the Hon ble Income Tax Settlement Commission. Accordingly, the ld. AO sought to add the entire amount of ₹ 21,39,275/- on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses by the assessee. In this background what is to be taxed is only the left over portion of the cash remaining with the assessee on this subject mentioned transaction , being the profit element, which has been already accepted by the Hon ble Income Tax Settlement Commission at 12% vide its order dated 28/06/2018 in assessee s group company cases. We held that the ld. CIT(A) ought to have followed the same in view of identical facts in the assessee herein also. Accordingly, we direct the ld. AO to make an addition @12% of inflation of expenses for the relevant assessment year in line with the direction of the Hon ble Income Tax Settlement Commission in assessee s group company cases. Accordingly, the ground No.1 raised by the assessee is pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2009-10 5,70,67,250/- 22,50,000/- 5,48,17,250/- 2010-11 2,52,54,500/- 4,81,50,000/- (2,28,95,500)/- 2011-12 Nil 1,21,17,250/- (1,21,17,250)/- 2014-15 3,35,00,000/- 1,15,00,000/- 2,20,00,000/- 2015-16 38,80,000/- 65,00,000/- (26,20,000)/- TOTAL 11,97,01,750/- 8,05,17,250/- 3,91,84,500 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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