TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Appeal Partially Allowed: Income Recomputation and Undisclosed Charges Upheld</h1> The Tribunal partially allowed the appeal, directing the re-computation of income on on-money receipts and deletion of an addition of Rs. 37,80,290. The ... - Issues Involved:1. Addition on account of on-money receipts from sale of flats/shops.2. Estimation of undisclosed income from on-money receipts.3. Addition on account of undisclosed machinery hire charges.Summary:Issue 1: Addition on account of on-money receipts from sale of flats/shopsThe assessee contested the addition of Rs. 32,57,322/- and Rs. 11,64,015/- on account of on-money receipts. The primary plea was that the entire amounts should not be taxed as income. The assessee also raised an Additional Ground, claiming deduction for unaccounted expenditure incurred against the on-money receipts. The Tribunal admitted the Additional Ground and found that the incurrence of such expenditure was evident from the material on record. The Tribunal directed the Assessing Officer to re-compute the income on account of on-money receipts, estimating the assessable income at 30% of the gross on-money receipts.Issue 2: Estimation of undisclosed income from on-money receiptsThe Assessing Officer estimated further undisclosed income of Rs. 37,80,290/- on the assumption that the assessee received on-money for all flats/shops, even where no such evidence was found. The Tribunal found that the seized material was complete and reflected no unaccounted consideration for some flats/shops. Therefore, it was unjustified to presume receipt of on-money in such cases. The Tribunal directed the deletion of the impugned addition of Rs. 37,80,290/-.Issue 3: Addition on account of undisclosed machinery hire chargesThe assessee challenged the addition of Rs. 16,47,873/- on account of undisclosed machinery hire charges. The Tribunal upheld the findings of the lower authorities, noting that the assessee failed to disclose the receivable amounts in his regular books of account. The addition made by the Assessing Officer was thus affirmed.Conclusion:The appeal was partly allowed. The Tribunal directed the Assessing Officer to re-compute the income on account of on-money receipts and delete the addition of Rs. 37,80,290/-. The addition of Rs. 16,47,873/- on account of undisclosed machinery hire charges was upheld. The final assessable total undisclosed income should not be below the amount disclosed by the assessee in the return of income.
TaxTMI 
TaxTMI 
