TaxTMI 
TaxTMI 
2012 (7) TMI 956
X X X X Extracts X X X X
X X X X Extracts X X X X
....ustomers which were found recorded in the seized documents, but the same was not recorded in the regular Books of account maintained by the assessee. 2. On the facts and in the circumstances of the case, the learned CIT(A), Nashik has erred in not taking cognizance of the deposition made by the assessee u/s 132(4) of the Act that the advances received from customers are unrecorded." 3. The short issue in controversy is whether the Ld CIT(A) was justified in deleting the addition and directing the A.O to consider the receipt of ₹ 71,67,000/- as a sale consideration in the year of sale of flats and taxed the profit on the sale of flats after considering the expenditure for the same. 4. The facts revealed from the record are as under.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion were not prepared up to the date of search action, and the consideration received in cash as booking advance for flats in Hari Sankul Niwas project amounting to ₹ 71,67,000/- are duly recorded in the audited books of accounts and audited, Balance Sheet as on 31/03/2009. The appellant has claimed that the said advance recorded in regular books of accounts can not be regarded as an un accounted income. The appellant further claimed that when the said advances were received, the foundation of the building was also not completed and hence it cannot be said that the appellant has earned income by constructing the building. The A.R. of the appellant argued that as the appellant has not rendered any services to the customers, the advance....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... has offered the same as income. The Hon'ble ITAT further laid down "The computation of income involves not only ascertaining all facts that but also analyzing and interpreting the facts for computing the income. The receipt of "on money" is an objective fact. However the income is legal concept which has to be arrived at after considering various other aspects such as expenditure and year of taxability. The business man can not be expected to know about all these matters. Such matters can not be ignored while making assessment even if a confessionary statement is made. Therefore after having fixed the quantum of on money the question of computation of income and the year of taxability of such income remains open". The hon'ble I.T.A.T. has ....