TaxTMI 
TaxTMI 
2013 (5) TMI 1002
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....f by consolidated order. 3. Revenue in these appeals is aggrieved by the action of Ld. CIT(A) in deleting addition of Rs. 7,48,150/- for A.Y.2003-04, Rs. 3,98,970 for A.Y. 2004-05 & Rs. 1,38,750/- for A.Y. 2006-07 on account of on money receipts out of Rs. 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 Rs. 16,46,970/- in these three years over and above the income disclosed during the course of search of over Rs. 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 Rs. 8,95,300/- du....
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....spectively and same has been paid out of the 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 Rs. 7,05,963/- and it is not recorded in the books of accounts of which an amount of Rs. 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 r....
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.... The appellant respectfully submits that in case of builder, where onmoney is found to be collected and certain expenses in relation thereto are also found to be incurred out 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 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)....
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....n the on-money receipts should be taxed. The appellant had disclosed certain profit of these gross receipts which cannot be said to be correct as not based on any reasoning. It was the contention of the Learned Counsel that where on-money is found to be collected or received and certain expenses in relation thereto 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....
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....ench of the Ahmedabad Tribunal in the case of Dy.CIT vs. Pramukh Builders 112 ITD 179 (Ahd.)( TM) for such finding for the above unreported decision. The decision of the Assessing Officer for taxing the gross receipts is not factually correct where the evidences of expenditure incurred are available in the seized material. In view of above discussion and relying on the decision of the jurisdiction Tribunal, the gross receipts are subject to tax @ 15 per cent, therefore, the additions are thus sustained for Rs. 1,47,150/- for the A V. 2003-04, Rs. 72.000/- for tha A.Y. 2004-05 and Rs. 27,750/- for the A.Y. 2006-07. Rest of the addictions are deleted for these appeals. The second ground of all these three appeals is accordingly partly allowed....