TMI Blog2022 (12) TMI 932X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire money. As find that division bench of this Tribunal while considering the similar issue for taxing the income component of on money in Enn Enn Corporation[ 2022 (4) TMI 1481 - ITAT SURAT] by following the decisions of Tribunal in other case sustained/ upheld the addition of 20% of alleged on money . However, no straight jacket formula can be applied in such case, therefore, direct the assessing officer to restrict the addition to the extent of 25% of Rs. 48 lacs. Ground of the appeal is partly allowed. - ITA No. 19/Srt/2022 - - - Dated:- 12-12-2022 - Shri Pawan Singh, Judicial Member For the Appellant : Shri Kiran K. Shah, A.R. For the Respondent : Shri J.K. Chandani, Sr. DR ORDER UNDER SECTION 254(1) OF INC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2 of the appeal is dismissed as not pressed. 3. Brief facts of the case qua the remaining sole ground of appeal is that the assessee is a builder and developer, filed its return of income for the A.Y. 2011-12 on 24/09/2011 declaring NIL income. Return of income was processed and accepted under Section 143(1) of the Income Tax Act, 1961 (in short, the Act) on 13/01/2012. The case of assessee was reopened on the basis of information that a search and seizure action was carried out by the department on 13/12/2016 in Bhajiyawala Group. During the course of search proceedings, a diary was impounded. In the diary, there was evidence regarding that Bhajiyawala Group made cash investment for purchase of flat at the project Swim Palace develo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he reply of assessee was not accepted by the Assessing Officer. The Assessing Officer added the entire amount of Rs. 48.00 lacs in the income of assessee. 4. Aggrieved by the additions in the assessment order, the assessee filed appeal before the ld. CIT(A). The ld. CIT(A) upheld the addition by taking a view that the assessee has taken stand that only profit from on money should be taxed. Such contention of the assessee is not acceptable as the expenses of assessee are duly reflected in its regular books of accounts. It is highly improbable that some of expenses would be left out as this will increase the assessable income of the year and increased the tax liability. No evidence or detail of such imaginary expenses have been given by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the amount of cash was return by way of cheque of Rs. 27.00 lacs and remaining amount of Rs. 21.00 lacs were offered in A.Y. 2012-13 when construction was substantially done. And in alternative the assessee submits that estimate profit on on money (cash money) may be added instead of taxing entire on money as income. I find that the assessing officer has not investigated the facts if the assessee returned part of cash component to Bhajiyawala Group or not nor verified if remaining of Rs. 21 lacs were offered in the subsequent year or not. The assessing officer has brought the entire amount to tax under section 68. So far as other alternative submissions of the assessee before assessing officer as well as submissions made before me, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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