2016 (5) TMI 235

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.... Income Tax (Appeals) erred in fact and in law in confirming the action of AO in not restricting the assessment / additions based on the material found during the course of search. 2. The learned Commissioner of Income Tax (Appeals) erred in fact and in law in confirming the action of the AO in estimating the amount of on money receipts from the Greenwood project at Rs. 1281.33 lacs despite the fact that no material was found during the course of search based on which the AO has computed the amount of on money. 3. The learned Commissioner of Income Tax (Appeals) erred in fact and in law in confirming the action of the AO in estimating the profit on "on money" receipts @ 25 % purely on the basis of assumptions, surmises and....

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....fficer estimated the on-money receipts in respect of 17 Bungalows sold during the year as well as upto date of search at Rs. 1281.33 lakhs as against the sale consideration of these 17 Bungalows recorded in books at Rs. 1182.77 lakhs and, thereafter, estimated the profits @ 25% of the on-money receipts which came to Rs. 3,20,33,000/-. Since the assessee has already disclosed an amount of Rs. 300 lakhs on account of onmoney receipts in respect of Greenwood Project, a net addition of Rs. 20,33,000/- was made by the Assessing Officer to the total income of the assessee, which was confirmed by the CIT(A) in appeal. 2.1 In this regard, the stand of the assessee before us was that the Assessing Officer was not justified in estimating the amoun....

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....ing the course of assessment proceedings, the assessee made submissions for establishing that no cash was received on either of these papers/customers and further, no cash was received or receivable in respect of other customers. The stand of the assessee has been that no cash was received but the amounts against alphabet 'c' represented the amount to be received subjected to the confirmation for extra work. The assessee also mentioned that the disclosure of Rs. 300 lakhs made during the course of search was sufficient to cover the unaccounted money received from the project. In this background, the Assessing Officer rejected the plea of the assessee and proceeded to estimate the amount of onmoney received by applying the extrapolation meth....