2021 (11) TMI 1002

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...., 1961 (hereinafter referred to as "Act") for the A.Y. 2015-16. 2. The Revenue Department has raised the following grounds of appeal:- "1. The order of the Ld. CIT(A)-1, Visakhapatnam is erroneous both on facts and in law. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) erred in holding that provisions of sec. 69A of the Income-tax Act, 1961, is not applicable to the case in spite of the fact that the assessee received cash/money(on-money) outside the books of account. 3. On the facts and in the circumstances of the case, the Ld. CIT(A) erred in directing the AO to estimate profit @15% of the unaccounted sale receipts of Rs. 2,49,70,000/- when provisions of sec. 69A of the Act are clearly applicable to the facts ....

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.... of this section. The concluding part of the impugned order is reproduced herein for ready reference: "it is only when an Assessee is found in any financial year to be the owner of any money which is not recorded in the books of account and the Assessee offers no explanation about the nature and source of acquisition of money, the money may be deemed to be the income of the Assessee for such financial year. In the present case, no money was found at the time of survey u/sec. 133A of the Act. Whet was found was only certain information suggesting that the appellant sold the flats at a higher rate than what was recorded in the sale deed. Moreover, the assessing officer himself gave a finding that the transaction is one that of sale of flats....

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.... Commissioner erred in directing the AO to estimate the profit @ 15% on unaccounted sale receipts, when the provisions of section 69 of the Act clearly applicable to the facts of the present case. The Ld. Commissioner while deciding non-applicability of the provisions of section 69A of the Act to the case of the Assessee, directed the AO to estimate profit @15% on unaccounted sale receipts. We are of the considered opinion that the ld. Commissioner though decided that section 69A of the act is not applicable to the facts of the case, however used his own wisdom by considering the peculiar facts and circumstances while following the decision of Hon'ble Gujarat High Court in the case of Jay Builder Vs. ACIT in Tax Appeal No. 255/2012, dat....