TaxTMI 
TaxTMI 
2021 (2) TMI 1095
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....A r.w.s. 143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 27/12/2017 by the ld. Dy. Commissioner of Income Tax, Central Circle 6(2), Mumbai (hereinafter referred to as ld. AO). Since identical issues are involved in both the appeals, these appeals are taken up together and disposed off by this common order for the sake of convenience. 2. The first identical issue to be decided is as to whether the ld. CIT(A) was justified in confirming the addition of Rs. 5,34,819/- as income from inflation of expenses in the facts and circumstances of the case for the A.Y.2013-14. 3. None appeared on behalf of the assessee. We have heard the ld. DR and perused the material available on record. We find that the search operation u....
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....find that the ld. AO had rebutted this plea of the assessee by stating that the fact of maintaining parallel books of accounts was accepted by the assessee's group even before the Hon'ble Income Tax Settlement Commission and 12% of the expenditure was offered as income. The ld. AO also observed that the fact of handing over of all the seized documents was also accepted by the assessee's group before the Hon'ble Income Tax Settlement Commission. Accordingly, the ld. AO sought to add the entire amount of Rs. 21,39,275/- on account of inflation of expenses for A.Y.2013-14. We find that the assessee had pleaded on without prejudice basis before the ld. CIT(A) that additional income offered by the assessee's group before the Hon'ble Income Tax S....
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....ed by the Hon'ble Income Tax Settlement Commission at 12% vide its order dated 28/06/2018 in assessee's group company cases. We held that the ld. CIT(A) ought to have followed the same in view of identical facts in the assessee herein also. Accordingly, we direct the ld. AO to make an addition @12% of inflation of expenses for the relevant assessment year in line with the direction of the Hon'ble Income Tax Settlement Commission in assessee's group company cases. Accordingly, the ground No.1 raised by the assessee is partly allowed and ground No.2 raised by the assessee is allowed. 6. The ground Nos.3 & 4 raised by the assessee for A.Y.2014-15 are exactly identical to AY 2013-14 which was adjudicated hereinabove and the decision rendered t....
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....3,91,84,500/- 7.2. We find that the assessee's group concerns also had offered 12% of on-money receipts as its income before the Hon'ble Income Tax Settlement Commission. The ld. CIT(A) categorically admitted in his order that the said receipt represents on-money received on sale of flats from which certain expenses were also incurred by the assessee and hence, only the profit element thereof could be brought to tax and not the entire on-money receipts. We find that the ld. CIT(A) accordingly estimated the profit element to be at 25% and restricted the addition to Rs. 55 lakhs as against Rs. 2,20,00,000 made by the ld. AO. Against this finding of the ld. CIT(A), the revenue is not in appeal before us. 7.3. It is not in dispute that assess....