TaxTMI 
TaxTMI 
2014 (12) TMI 800
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....ht, she failed to make an entry in the appeal register maintained by her and the same was realized on enquiry made by the assessee and because of this fact, there has been a delay in filing the appeal before the Tribunal. 1.2. The Ld. Departmental Representative strongly resisted to the condonation of delay. It is the say of the Ld. DR that subsequent notices issued by the AO should have triggered the assessee to enquire about the filing of the appeal which it has grossly failed. Therefore, the assessee had no bonafide reason for filing the appeal so late. 1.3. Having heard the rival submissions and facts of the case, we find that the assessee has explained a reasonable cause for not filing the appeal within the period of limitation as there was an inadvertent mistake at the office of the Chartered Accountant. The same is found to be supported by an affidavit of the Administrative Head of the Chartered Accountant firm. In our considered opinion, by not filing the appeal within the period of limitation, the assessee cannot have any ulterior purpose. No prudent person would act in such a manner that his action can be detrimental to his own interest. By not filing the appeal on time....
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....diture should not be treated as assessee's undisclosed income. In its reply dt. 21.12.2009 the assessee contended that the entire undisclosed sales/receipts cannot be added to the total income of the assessee. The addition should be limited only to the extent of profits embedded in sales/receipts. It was explained that taking a leaf out of the principle laid down in Sec. 44AD of the Act, the assessee has offered net profit margin of 8%. The AO did not accept this contention of the assessee. After allowing all the unaccounted expenditure except Rs. 34.50 lakhs, the AO proceeded by making an addition of unaccounted income of Rs. 7,l1,91,589/-, reiterating the admission of the assessee during the course of the search proceedings declaring Rs. 5 crores as its unaccounted income. 4. The assessee carried the matter before the Ld. CIT(A) and reiterated its claim that only the embedded profit in the total unaccounted receipts should be taken into consideration for estimating the profit of the assessee. After considering the facts and the submissions, the Ld. CIT(A) was of the firm belief that since the assessee itself has offered Rs. 5 crores during the course of the search proceedings, i....
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....atinum Properties and admitted by the persons above in their respective statements, on the basis of the papers seized from the respective premises. You may go through the respective seized papers also including the papers impounded from the office premises of M/s. Platinum Properties at Plot No.4, Sector 20, Road Pali, Khargar Taloja Road, Kalamboli, Panvel? A) After going through the statements of Shri Nanji R. Patel, Shri Ambavi D. Vavia and Shri Devji W. Patel recorded during the course of search proceedings at their respective residences and statement of Shri Devji Patel recorded during post search proceedings and also going through the respective seized papers and the papers impounded from the office premises of M/s. Platinum Properties at Plot No.4, Sector 20, Road, Pali, Khargar Taloja Road, Kalamboli, Panvel, I hereby declare a sum of Rs. 500 lakhs as total additional income (including the income declared by Shri Ambavi Vavia of Rs. 200 lakhs and Shri Nanji Patel of Rs. 300 lakhs approx. in their statements recorded u/s. 132(4) during the course of search proceedings) over and above the income reflected in the books, being unaccounted income generated by M/s. Platinum Prop....
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....Plot No. 4 Sector 20, Roadpali, Kharghar, Taloja, Kalamboli Bundle No. Page No. Assessment year Unaccounted Receipts Unaccounted Expenditure 3 2 2008-09 - - 36,105 3 4 2008-09 - - 35,000 3 5 2008-09 - - 22,300 3 7 2008-09 - - 60,000 3 8 2008-09 - - 200 3 10 2008-09 - - 57,000 4 2 2008-09 - - 14,157,375 4 4 2008-09 - - 6,060,375 4 6 2008-09 - - 14,215,500 4 8 2008-09 - - 4,719,125 4 10 2008-09 - - 9,438,250 4 130 2008-09 - - - - 4 131 2008-09 - - 285,000 Total 49,086,230 10. A perusal of these unaccounted entries shows that the assessee was making entries of the on-money received by it during the course of its business. U/s. 153A, the AO has the power to assess or reassess the total income in respect of each assessment year falling within such assessment year in case of person where a search is initiated u/s. 132 of the Act. Thus, the AO has the power to assess or reassess the total income of the assessee. What can be taxed is the undisclosed income and not the undisclosed receipts, this means that only a reasonable amount of profit which the assessee could have earned can b....