2012 (7) TMI 983

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....s in deleting the addition made by the Assessing Officer on account of `On-Money' amounting to Rs. 1,52,53,128/-" 2. We heard learned Senior Counsel Mr. Manish R Bhatt assisted by learned advocate Ms. Mauna Bhatt for the appellant. 3. The relevant facts emerging from the record of the appeal are that the assessee partnership firm, engaged in the business of real estate, developed the project namely 'Amarjyot Apartment' and 'Amardham' during the financial years 1997-98 to 2003-04. For the year under consideration being assessment year 2005-06, the assessee showed the sale of 39 flats for the total price of Rs. 2,18,11,872/-. Net profit of Rs. 16,79,144/- was shown and deduction under section 80-IB of the Income Tax Act, 1961 (hereinaft....

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.... on the ground that in assessee's own case in ITA No.2041 for the previous Assessment Year 2004-05, it had held that in absence of any cogent evidence, no extrapolation could be made. 4. The following observations in the impugned order reflect the reasoning adopted by the Tribunal while dismissing the Department's appeal. "After hearing both the sides, we have carefully gone through the orders of the authorities below. It is pertinent to note that in para 10, the ITAT, Ahmedabad 'D' Bench in assessee's own case in ITA No.2041/A/2007 for the assessment year 2004- 05, has held that in the absence of any cogent evidence, there was no scope for extrapolation. On this basis, it was held that addition cannot be made in other years. ....