Tribunal decisions: Partial allowance, dismissal, undisclosed income upheld, TDS disallowed, section 154 rectification, fresh examination.

The tribunal partially allowed ITA No. 1995/Mum/2012 for statistical purposes, dismissed ITA No. 5264/Mum/2013, and allowed ITA No. 1466/Mum/2014 for statistical purposes. The tribunal upheld the addition of undisclosed income based on material discovered during the search, disallowed expenses for non-deduction of TDS, remitted the issue of unexplained cash credit for fresh consideration, upheld the rectification order under section 154, and directed a fresh examination regarding unexplained cash credits related to sundry creditors and advances.

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Issues Involved:
1. Sustenance of impugned estimation of Net Profit.
2. Sustenance of additions u/s.40(a)(ia).
3. Sustenance of additions u/s. 68.
4. Validity of rectification order u/s. 154.
5. Validity of proceedings initiated u/s. 147.
6. Addition of unexplained cash credits u/s. 68.

Issue-wise Detailed Analysis:

1. Sustenance of Impugned Estimation of Net Profit:
The assessee appealed against the CIT(A)'s decision to uphold the Assessing Officer's (AO) estimation of Net Profit at Rs. 89,50,560. The AO observed that the assessee suppressed profit on the sale of 'Morya Apartment' project, showing a sale consideration of Rs. 1,00,00,000 in the registered agreement but actually receiving Rs. 1,75,00,000, with Rs. 75,00,000 unaccounted cash. The AO treated the difference as undisclosed income. The CIT(A) upheld this, noting the assessee admitted to receiving the cash and failed to rebut the AO's findings. The tribunal agreed with CIT(A), stating the addition was based on material discovered during the search and upheld the order.

2. Sustenance of Additions u/s.40(a)(ia):
The AO disallowed certain expenses amounting to Rs. 13,85,565 due to non-deduction of TDS, adding back Rs. 5,83,174 and Rs. 3,51,848 for 'Morya Apartment' and 'Mayuresh Apartment' projects, respectively. The CIT(A) upheld the disallowance, referencing the Mumbai Tribunal's decision in Bharati Shipyard Ltd. vs. DCIT, which held the amendment to section 40(a)(ia) was not retrospective. The tribunal agreed, finding no need for interference.

3. Sustenance of Additions u/s. 68:
The AO treated Rs. 1,15,000 received by the assessee as unexplained cash credit u/s. 68 due to lack of information. The CIT(A) rejected additional evidence submitted by the assessee for not being provided earlier. The tribunal remitted the issue to the AO for fresh consideration, directing the AO to take into account the additional evidence and grant the assessee an opportunity to be heard.

4. Validity of Rectification Order u/s. 154:
The AO rectified an order u/s. 154, adding Rs. 6,00,000 and Rs. 5,83,174 to the total income due to apparent mistakes in the original assessment order. The CIT(A) upheld the rectification, noting the additions were not subject to appellate adjudication and the AO acted within legal provisions. The tribunal agreed, finding no infirmity in the AO's rectification under section 154.

5. Validity of Proceedings Initiated u/s. 147:
The assessee challenged the validity of proceedings initiated u/s. 147 and the assessment order passed u/s. 143(3) r.w.s. 147. The tribunal did not specifically address this issue in the detailed analysis provided.

6. Addition of Unexplained Cash Credits u/s. 68:
The AO added Rs. 51,99,883 as unexplained cash credits due to unverified sundry creditors and advances for flat bookings. The CIT(A) upheld the addition, noting the assessee failed to provide necessary confirmations and evidence. The tribunal remitted the issue to the AO, directing a fresh examination to determine if the credits arose during the year or were carried forward from previous years, as addition u/s. 68 is not permissible for credits from earlier years.

Conclusion:
- ITA No. 1995/Mum/2012: Partly allowed for statistical purposes.
- ITA No. 5264/Mum/2013: Dismissed.
- ITA No. 1466/Mum/2014: Allowed for statistical purposes.

Pronounced in the open court on 13.8.2021.

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