https://www.taxtmi.com/caselaws?id=768554 ITAT Ahmedabad ruled on unaccounted transactions relating to sale of immovable properties under Section 153A assessment. The tribunal held that once unaccounted receipts from property sales are taxed as capital gains, related unaccounted expenditures cannot be separately taxed as unexplained expenses, ensuring only net real income is taxed. The tribunal allowed indexation benefit for the year of transfer rather than year of receipt of sale proceeds, directing AO to re-compute capital gains using Cost Inflation Index of transfer year. Regarding internal circulation of funds, the tribunal upheld CIT(A)'s deletion of additions, confirming amounts already taxed in other entities' hands should not face double taxation. For unaccounted business receipts, the tribunal confirmed 30% profit rate adoption was justified based on business nature and available data. en-us Fri, 10 Jan 2025 00:00:00 +0530 Tue, 08 Apr 2025 11:23:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768554 ITAT Ahmedabad ruled on unaccounted transactions relating to sale of immovable properties under Section 153A assessment. The tribunal held that once unaccounted receipts from property sales are taxed as capital gains, related unaccounted expenditures cannot be separately taxed as unexplained expenses, ensuring only net real income is taxed. The tribunal allowed indexation benefit for the year of transfer rather than year of receipt of sale proceeds, directing AO to re-compute capital gains using Cost Inflation Index of transfer year. Regarding internal circulation of funds, the tribunal upheld CIT(A)'s deletion of additions, confirming amounts already taxed in other entities' hands should not face double taxation. For unaccounted business receipts, the tribunal confirmed 30% profit rate adoption was justified based on business nature and available data. Case-Laws Income Tax Fri, 10 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768554