Tribunal grants relief to assessee, dismisses Revenue appeals, adjusts turnover, profit rate, deletes disallowance.

The tribunal partly allowed the assessee's appeals for statistical purposes and dismissed all Revenue appeals. The AO was directed to exclude future sales on unsold plots from suppressed turnover and apply a 12.5% profit rate. The disallowance under Section 40(a)(ia) was deleted for lack of supporting evidence.

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Issues Involved:
1. Estimation of suppressed turnover
2. Determination of suppressed turnover
3. Rate of profit on suppressed turnover
4. Disallowance under Section 40(a)(ia) of the Income Tax Act

Estimation of Suppressed Turnover:
The assessee contended that the quantification of undisclosed turnover was merely an estimate based on figures in pencil concerning a few plots, lacking corroborative evidence. They argued that the AO adopted a uniform value for all plots, ignoring variations in consideration. The CIT(A) rejected these contentions, stating that the quantification was based on a careful examination and analysis of seized material, detailing the sale of plots in nine ventures. The methodology was logical, correct, and backed by solid evidence. The tribunal upheld this, noting that the assessee failed to counter the AO's working with evidence, thus rejecting the grounds on this issue.

Determination of Suppressed Turnover:
The AO worked out gross receipts at Rs. 123.51 Crores, giving credit for admitted receipts at Rs. 92.43 Crores and future collections at Rs. 20.47 Crores, arriving at a suppressed turnover of Rs. 10.60 Crores. The CIT(A) directed the AO to adopt total disclosed receipts at Rs. 95,13,63,302/-. The assessee argued that the AO wrongly considered the registered value instead of the actual value recorded post-search, which should be reduced. The CIT(A) dismissed this, stating the AO correctly reduced the registered value. The tribunal found that future sales on unsold plots as of the search date cannot be taxed and directed the AO to exclude such amounts while determining suppressed turnover.

Rate of Profit on Suppressed Turnover:
The CIT(A) estimated the profit percentage at 40%, relying on judgments from the Madhya Pradesh and Gujarat High Courts. The tribunal noted that there cannot be a fixed profit percentage for any business and found the 40% estimation unreasonable. Considering the facts and the accepted profit rate of 4% on declared turnovers, the tribunal deemed a 12.5% profit estimation on suppressed turnover reasonable, modifying the CIT(A)'s order accordingly.

Disallowance under Section 40(a)(ia) of the Income Tax Act:
For AY 2013-14, the AO made a disallowance of Rs. 22,000/- under Section 40(a)(ia), which the CIT(A) deleted, citing a lack of incriminating material from the search to justify the addition. The tribunal upheld this, noting that the AO did not specify whether the assessment order had been passed earlier and found no evidence supporting the disallowance. The tribunal agreed with the CIT(A) that the AO could only consider undisclosed income based on seized material or other information, dismissing the Revenue's contentions.

Conclusion:
The appeals of the assessee were partly allowed for statistical purposes, and all the appeals of the Revenue were dismissed. The tribunal directed the AO to re-examine and exclude future sales on unsold plots from the suppressed turnover and to apply a 12.5% profit rate on the determined suppressed turnover. The disallowance under Section 40(a)(ia) was deleted due to a lack of supporting evidence.

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