TaxTMI 
TaxTMI 
2013 (5) TMI 1002
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....appeals is aggrieved by the action of Ld. CIT(A) in deleting addition of ₹ 7,48,150/- for A.Y.2003-04, ₹ 3,98,970 for A.Y. 2004-05 & ₹ 1,38,750/- for A.Y. 2006-07 on account of on money receipts out of ₹ 8,95,300/-, 4,70, 970/- & 1,66,500/- respectively. 4. Brief facts of the case are that assessing officer on examination of seized documents found that assessee had received on money of ₹ 16,46,970/- in these three years over and above the income disclosed during the course of search of over ₹ 2 crores. The assessing officer after considering the reply of the assessee taxed the gross receipt as income of the assessee in these three years and made the addition of ₹ 8,95,300/- during the assessment ye....
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....e on-money received and therefore no farther references is to be taken for any further action. Page No. 127 to 136 contains the particulars of amount paid to Aaj Architect towards drawing architect fees in respect of various projects carried out by the group of the assessee. The assesses has paid total amount of ₹ 7,05,963/- and it is not recorded in the books of accounts of which an amount of ₹ 1,85,000/- is repetition of transaction reflected on page no. 81 & 82 as explained above. Particulars of year-wise break up are as under: Page no. of seized material Financial year Amount paid (Rs.) Repetition of amount paid as per page no. 81 & 82 as above (Rs.) Net Amount not recorded in regular books of account (Rs.) 127 2004....
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....ame is required to be estimated reasonably as has been held by the large number of authorities listed below. CIT vs. President Industries, 258 CTR 654 (Guj), wherein it has been held that unaccounted sales, when there is unaccounted sales the only profit can be added in the sales not entire sales. The similar view has been confirmed by the jurisdictional High Court in the case of CIT vs. Gurubachhan Singh J Juneja, reported in 215 CTR (Guj) 509. Kishor Telwala vs. ACIT 64 TTJ 543 (Ahd.) (Mum) Abhishek Corporation 63 TTJ 651 (Ahd.) Culcutta Co. Ltd 37 ITR 1 (SC) Nareshkumar B. Agarwal vs. ACIT 104 Taxman 222 Param Anand Builders Pvt. Ltd vs. ITO (Mumbai) 59 ITD 29 Wall Street Construction Ltd. vs. DCIT, ITAT, Mumbai Third Membe....
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....to are also found to be inquired out of books, only net income can be subjected to tax and same is required to be estimated reasonably as has been held by the large number of authorities. It is evident from the submission of the Learned Counsel that evidence of incurring of expenses were available in the seized documents/material. He has given the details of such expenses which are reproduced in para-3.1 above. After considering the details of such expenses as per seized material, it cannot be held that the gross receipts of on-money are to be taxed. The Learned Counsel has relied on various authorities during the assessment proceedings as well as during the appellate proceedings. The Assessing Officer had not given any reason as to how the....