TaxTMI 
TaxTMI 
2022 (1) TMI 1330
X X X X Extracts X X X X
X X X X Extracts X X X X
....018 pertaining to the above three assessment years. 2. It was common ground that the issue involved in all the appeals was similar, arising in identical backdrop of facts. Therefore, all three appeals were taken up together for hearing and are being disposed by a common consolidated order. 3. Ld.counsel for the assessee at the outset stated that the sole challenge to the order of the ld.CIT(A) in the present appeals was against confirmation of addition made to the income of the assessee on account of alleged on-money received by the assessee from its business of real estate development. He drew our attention to the grounds raised by the assessee in all three appeals as under: 1. On the facts, and in the circumstances of the c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ders fit and in support of his pleadings, besides relying on various judicial decisions, he contended that it is common knowledge that the entire amount received in cash is not in the nature of income, and major portion of it is also expended in cash. He further pointed out that as per the facts of the case before us, component of the on-money received was almost 50% or more of the amounts booked on account of sale of the property in the books of accounts of the assessee and by no stretch of logic or imagination such a huge amount, almost 50% of the total sale consideration of the property accounted for, could be said to be the profit element in real estate transaction. He further contended that the properties sold were too small in size to....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ursuance of notices u/s 143(2) and 142(1), the AR of the appellant filed the details and explanations. During the period of search A.Ys. (A.Ys. 2010-11 to 2016-17) the appellant had undertaken a housing project called "New Mont Villa" at Gotri, Vadodara which is a scheme of 20 luxurious bungalows. 3.1 During the survey proceedings .at the business premises of M/s Padmavati Housing Corporation (herein after referred to as PHC) some registers/loose papers were found and impounded as Annexure A3 which pertained to the bookings of bungalows made in New Mont Villa project. The AO noted that Pages 4, 5, 6 and 7 of Annexure A3 are an index containing details of each bungalow with built-up area name of buyer and amount in rupees. The scann....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uction and interior undertaking by the customers. The AO did not find the explanation acceptable as the appellant's submission was not supported by documentary evidences. The AO arrived at difference of Rs.33,00,000/- received as on-money in the context of bungalow No. A20 relevant to A.Y. 2013- 14 and added the amount while determining the assessed total income of Rs.36,08,680/-. 3.2 Similarly for the A.Y. 2015-16 the AO arrived at the difference of Rs.1,44,75,000/- as on-money for 8 bungalows (C1, C6, B7, B8, C12, C16, C17 and A19) and total income was determined at Rs. 1,66,44,060/- against returned income of Rs.21,69,060/- and for A.Y. 2016-17 the AO arrived at the difference of Rs.39,94,OOO/- as onmoney for 4 bungalows (C2....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... listed the various bungalows sold by the assessee during three years on which the assessee was found to have received on money, giving details of their sizes, of their built-up area and amount for which sale of these bungalows was actually booked by the assessee, and the on-money which was treated by the Revenue to have been received by the assessee on the basis of the documents found during the course of search, as under: 8. Considering the above admitted facts, it is clear that the factual contentions made by the ld.counsel of the assessee with respect to the on-money received appears to be correct. The table reveals and as contended by the ld.counsel for the assessee before us also that, on-money components on the sale of these bunga....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d in the peculiar facts and circumstances of the case demonstrated before us by the ld.counsel for the assessee. 9. In view of the above, all three appeals of the assessee are partly allowed in the above terms. Order pronounced in the Court on 6TH January, 2023 at Ahmedabad. ============= Document 1 No.CIT(A)-12/Ahd/376,377,378/CC-2/17-18 A.Yrs.2013-14,2015-16, 2016-17 Padmavati Housing Corporation Addition in A.Y. 2013-14 TABLE A Amount as Cash Amount (D) (C) (E) A 20 14021 2350 Alay At 405000 150000 70000 71000 300000 per cum 3000000 Addition in A.Y. 2015-16 Total addition by the AO in A.Y.2013-14 3300000 Raksha Mittal 1 1515 1726 C 1 7000000 Zaveri 5600000 56000....