2015 (6) TMI 1060

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.... the material on record are as under:- 3. Assessee is a partnership firm stated to be engaged in the business of construction and development of housing project. A search and seizure operation u/s. 132 of the Act was carried out at the business premises of the Assessee. During the course of search, Assessee had disclosed Rs. 19,05,90,680/- as unaccounted income from "on money" in A.Y. 07-08 & 08-09. For the year under consideration, Assessee had included Rs. 15 crore as the income and included it in the Return of Income that was filed by the Assessee. Thereafter the Assessment was framed u/s. 143(3) r.w.s. 153A on 31.12.2009 and the total income was determined at Rs. 16,57,09,030/-. On the undisclosed income of Rs. 15 crore, A.O vide pen....

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....t of "on money" booking of Ashirwad Residency project. The appellant did not give any general statement that it would show some undisclosed income in the return of income. The appellant had broadly quantified the net undisclosed income taking into account the seized records like Annexure -B-1, B-2 & B-5. The appellant has also admitted "on money" booking in his Q/A. No. 36 & 37 on his statement on 15.02.2008 u/s. 132 (4) of the Act. Even the findings by the learned DCIT on page 4-5 and 19 of the assessment order further justify the manner of earning as well as sustaining thereof. The A.O. himself has calculated the "on money" on the basis of certain seized records and further estimated 16 % net profit on such "on money" (which was red....

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....aimed to be earned from the source and give the manner of earning this income and substantiate the same. But here it is not the case. Here, the evidence has been found that income is earned from the business of construction and charging on money on this sale of flats and the appellant is also accepting the fact and offered the said income and specified the same manner and it gets substantiated by the incriminating documents found during the search itself. The Assessing Officer has not found any other source of income apart from this. Hence, the required conditions are fulfilled. In view of these facts, it is held that the Assessing Officer was not justified in levying the penalty u/s.271 AAA of the Act and the same is deleted. 4. Aggriev....