TaxTMI 
TaxTMI 
2017 (4) TMI 1090
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....e and in Law, the Ld.CIT(A) has erred in allowing relief of Rs. 39,24,800/- to the assessee out of addition of Rs. 44,60,000 made by the Assessing Officer on account of undisclosed income earned from sale of row houses in the project of Manav Row House. (ii) On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in allowing deduction in respect of expenses @ 88% of sale consideration of Rs. 49,19,345/-{(48,00,OOO x l00/88)- Rs. 5,35,200/-} in contravention to the provisions of section 69C of the Act. 2. The facts of the case are - In the case of assessee, a T.E.P. was received by the ADIT(Inv.)-III, Surat. After making enquiries, a copy of the report was sent by the ADIT to the office of the AO. After co....
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....ts sold in F.Y.2005-06 i.e. A.Y.2006-07 has been attached and copies of Profit & Loss account showing this income and acknowledgment of return of income filled were already attached. 3. So far of income pertaining to construction such plots are concerned, they stated that they have already shown the construction income earned from Manav Row House project in their return of income, as and when it is received. Out of total 08 plots sold, they have constructed 06 plots as per the clients' requirement on job work basis, where materials have been supplied by the client and they have provided only labour service. 02(Two) plots owners have constructed house on their own. They have offered this job work income u/s.44AD of the IT Act as and w....
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....cated and not having proper accounting knowledge. But same contention was also not acceptable. And Id.AO made the following addition:- Total income as per the statement of income - Rs. 1,92,058/- Add: Undisclosed income as discussed in Para No. 6. Rs. 44,60,000/- Total Assessed Income - Rs. 46,52,058/- Rounded off- Rs. 46,52,060/- 5. Against the said order assessee/appellant preferred a statutory appeal before the CIT(A). Ld CIT(A) partly allowed the appeal and by given following observation that this is established by the fact that constructed Raw Houses were sold but documents had been executed for land portion alone and no entry would therefore be found in the bank account. The conclusion of the AO....
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....cheque and the balance of Rs. 2,30,616/- collected in cash and the transaction was not denied by the assessee. Accordingly we are of the opinion that the assessee in fact did charge "on money" in relation to booking/sale of flats. However, the entire receipts on account of "on money" charged by the assessee on sale/booking of flats cannot be the undisclosed income of the assessee for the block period because what can be taxed under Chapter XIV-B is undisclosed income and not the undisclosed receipts, during the course of hearing before the Revenue Authority. Assessee has brought evidence on record to support that he had to pay a sum of Rs. 38 lakhs to the erstwhile organizer of NTC and further a amount of Rs. 21.91 lakhs for the land to var....
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....xcept those which have been referred to in the statement of the assessee and a broad breakup of which was given by the assessee in his statement aggregating to Rs. 17 lakhs. These assets are by way of application of the unaccounted income which have been earned by the assessee from Hare Krishna Apartment project, part of which was reflected on the piece of paper found during the course of search against which the assessee himself has offered a sum of Rs. 17 lakhs as his unaccounted income. Thus, it is clear that-the assets found at the time of search were the application of the unaccounted income of Rs. 17 lakhs which was offered to tax by the assessee in his return filed in response to notice under section 158BC. Thus, keeping in view the ....