TaxTMI 
TaxTMI 
TaxTMI 
2022 (4) TMI 1481
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....following grounds of appeal: "1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in estimating the profit @ 20% of "on-money" receipts without appreciating that the assessee could not produce any evidence for the expenses incurred in relation to "on-money" receipt of Rs.1,94,75,000/-. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in restricting the addition of Rs.1,94,75,000/- made on account of unexplained cash receipts to Rs.38,95,000/- without verifying the amount of expenditure incurred against above unexplained cash receipts nor any remand report was called for by the Ld. CIT(A) from the A.O. 3. It is, therefore, prayed that the order the Ld. CIT(A)-4, Surat may be set aside and that of the AO may be restored to the above extent. 4. The assessee craves leave to add, alter, amend and/or withdraw any ground(s) of appeal either before or during the course of hearing of the appeal." 4. Brief facts as discernable from the orders of lower authorities are that a search action u/s 132 of the Income Tax Act was carried out in the case of Param Group at its office. Further, a survey u/s 133A was ....
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.... regarding any of the entries in their seized documents to be incorrect has been made by the said firm, (ii) entries of cheques in the cash book clearly corresponds to the entries in the bank statements of the corresponding parties, (iii) perfect match of several entries in pocket diaries acknowledged by various parties with the corresponding entry in the said cash book, (iv) owning up of many entries in the seized cash book by third parties attended in response to summons and admittance that the entries in the cash book of M/s Param Properties do correspond to the transactions made by them and (v) nothing has been put forth by the partners of Param Properties at any time, even in the form of an argument, till date, implying that there are incorrect entries in the said cash book. In respect of Annexure BS-50 Page No. 16, it was stated by Shri Agam V. Vadecha in his statement recorded on oath on 16.10.2015 that the same is the copies of original diary of Flat No. H-801 of the project Florence project. Thus, assessing officer noted that sanctity and correctness of the documents seized from the premises of the assessee firm during the search action crystal clearly stands established. ....
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....n the light of clinching evidences, the assessing officer held that it is established that the assessee had received the amount of Rs.1,94,75,000/- as 'onmoney' for the booking of Flat A-702 of Florence Project, which is unaccounted in nature therefore, assessing officer made addition to the tune of Rs.1,94,75,000/- u/s 69A of the Act. 9. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the ld. CIT(A) who has deleted the addition. Aggrieved, the Revenue is in appeal before us. 10. Shri H. P. Meena, Learned CIT(DR) for the Revenue vehemently argued that in respect of Annexure BS-50 Page No. 16, it was stated by Shri Agam V. Vadecha in his statement recorded on oath on 16.10.2015 that the same is the copies of original diary of Flat No. H-801 of the project Florence project. Thus, sanctity and correctness of the documents seized from the premises of the assessee firm during the search action crystal clearly stands established. Further, during the course of post search enquiry, summons u/s 131 of the Act was issued to Shri Naresh Nemichand Shah, key person and Director of M/s Enn Enn Corporation Ltd and his statement was recorded on o....
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.... taxed. 12. We have given our thoughtful consideration to rival contention. We have perused case file as well as paper books furnished by assessee. We note that a search u/s 132 of the Act was conducted upon M/s Param Gorup of cases. The assessee company was surveyed u/s 133A of the I.T. Act on 03.09.2015. During the course of search of the premises of M/s. Param Properties on 04.09.2015, incriminating documents were found and seized. In the said documents, details of flat no. A-702 of Florence Project undertaken by the assessee Company, was written. Statement of Shri Aagam Vadecha, was record on the documents found during the course of search. As per these documents, customer paid on money in cash for purchase of flat from the assessee. Statement of Shri Naresh N. Shah, Director of the assessee company was recorded on 23.10.2015 and during the statement he admitted the document found as related to flat no. A-702, Florence project undertaken by the assessee company. Shri Naresh N. Shah further filed a letter confirming that he is disclosing additional profit of Rs.l4.85 Crores in the hands of the assessee for A.Y. 2016-17 for Florence & Fiona Project. He made disclosure of additio....
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....and dismiss the appeal filed by the Revenue. 14. Now, we shall take Revenue's appeal for AY.2016-17, wherein the grounds of appeal raised by Revenue are as follows: "1. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in treating the addition of Rs.14,85,00,000/- made on account of unexplained cash credits u/s 68 r.w.s 115BBE of the I.T. Act as business income without appreciating the fact that the assessee failed to explain the source of such cash credits and more particularly the assessee could not provide even the identity of the persons from whom the above amount of Rs.14,85,00,000/- was received. 2. On the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in allowing the carried forward unabsorbed depreciation against the income of the current year by relying on the judgment of the Hon'ble High Court of Gujarat in the case of CIT-II V/s. Shipla Dyeing & Printing Mills (P) Ltd. (2013) 35.Taxmann.com.3(Guj.) without appreciating the fact that the said judgment of the Hon'ble High Court of Gujarat deals with the set-off current year business loss with the income declared during the survey and not tha....
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....oks of an assessee maintained for any previous year and the assessee offers no explanation or explanation about the nature and source thereof or the explanation offered by him is found not satisfactory, the sum credited may be charged to income tax as the income of the assessee of that previous year. In this case, the director of the assessee company made disclosure on the basis of documents found and impounded during the course of survey, which is admitted the AO in the assessment order itself. The Director further stated that the income was earning from the project named Florence & Fiona. The income from that project has been assessed as business income. Therefore, the additional income credited by the assessee is from the business activities. The assessee has offered explanation and AO had not given any reason for finding it non-satisfactory. When the disclosure was based on documents found during the course of survey, additional income is disclosed on the basis of such documents and on such additional income was stated as earned from specific project, the assessee's explanation cannot be held as non-satisfactory. Therefore, ld CIT(A) observed that the findings of the AO con....