2015 (8) TMI 1484

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....umstances of the case and in law, the ld.CIT(A) has erred in deleting addition of Rs. 1,00,00,000/- made under section 68, section 69 and section 69C of the IT At, without appreciating the fact that assessee failed to offer an explanation regarding the source of Rs. 1,00,00,000/- credited in its books of account as WIP, even though during the course of survey u/s.133A of the I.T.Act on 13.03.2008, the partners of the assessee firm accepted Rs. 1,00,00,000/- as the receipt of the firm from undisclosed sources." 3. The ld.counsel for the assessee at the outset submitted that the issue in dispute is squarely covered in favour of the assessee by the decision of the ITAT, Ahmedabad Bench in the case of ACIT Vs. Shree Padmavati Developers, ren....

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....s of flat not recorded in books." Unquote. Consequent thereupon, the said amount of Rs. 50 lacs was duly disclosed in the Profit & Loss account drawn on 31.3.2007. In the case of the CIT vs. Suman Paper and Board Ltd. [2009]314 ITR 119 (Guj.) an observation has been made that manufacturing and sale of Board paper and craft paper happened to be the only source of income of the assessee, therefore the amount disclosed consequence upon the search partakes the character of business income and eligible for the deduction u/s.80IB/80IA of the I.T.Act. In the present case, the assessee has admitted that the impugned amount was part of the sale consideration received in cash at the time of booking of flats and, therefore, the amount had direct and p....

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.... of the Assessing Officer. In the present case undisclosed income found in the form of cash was explained as having been acquired while carrying on business as a builder and this explanation was accepted by the Assessing officer by having assessed the undisclosed income for the block period as income from profits and gains of business or profession. Therefore, the reliance by the revenue upon the decision of the Gujrat High Court in the matter of Fakir Mohmed Haji Hasan (supra) is not correct as the facts of that case are completely distinguishable from the present facts. In the present case, no question of application of section 68,69 and 69A, 69B and 69C of the said Act arises as the same has not been invoked by the Department. It is an a....