Assessee's Appeal Allowed: Fresh Adjudication Ordered on Alleged On Money The appeals by the assessee, arising from orders of the Commissioner of Income Tax regarding additions made on account of alleged on money received on the ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Assessee's Appeal Allowed: Fresh Adjudication Ordered on Alleged On Money
The appeals by the assessee, arising from orders of the Commissioner of Income Tax regarding additions made on account of alleged on money received on the sale of flats, were allowed for statistical purposes. The Tribunal emphasized the necessity of corroborative evidence beyond seized documents and statements, remitting the issue back to the Assessing Officer for fresh adjudication based on previous rulings within the group. The Assessing Officer was directed to limit the assessment to the additions sustained by the Commissioner (Appeals) and provide the assessee with a fair opportunity to present their case.
Issues: - Addition made on account of alleged on money received on sale of flats.
Analysis: 1. The appeals by the assessee arose from two separate orders of the Commissioner of Income Tax for multiple assessment years. The central dispute in all appeals pertained to the addition made regarding alleged on money received on the sale of flats.
2. During a search and seizure operation, incriminating material was found, indicating on-money received in relation to various projects. Statements under section 132(4) were recorded, where individuals admitted to the receipt of on money. Consequently, proceedings were initiated against the assessee under sections 153A and 153C of the Income Tax Act.
3. The assessee denied receiving on money, providing explanations and affidavits retracting earlier statements. However, the Assessing Officer rejected these contentions, estimating on money received at 30% of gross sales based on seized documents and statements. The Commissioner (Appeals) modified this, directing an addition of 30% on gross sales of specific projects only.
4. The assessee argued that additions were made solely based on a seized document without corroborative evidence, emphasizing that no specific mention of on money was present. Comparisons were drawn with similar cases where additions were deleted by the Tribunal.
5. The Tribunal considered the seized document as the basis for additions and noted that similar additions were made in other cases within the Rohan Group. However, the Tribunal emphasized the need for corroborative evidence to establish the actual receipt of on money, beyond the seized document and statements.
6. Due to the relevance of decisions in similar cases within the group, the Tribunal decided to remit the issue back to the Assessing Officer for fresh adjudication in light of previous rulings. The AO was instructed to limit the assessment to the additions sustained by the Commissioner (Appeals) and provide the assessee with a fair opportunity to present their case.
7. Ultimately, all appeals were allowed for statistical purposes, with the decision pronounced in an open court session on November 24, 2021.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
