TaxTMI 
TaxTMI 
TaxTMI 
2022 (1) TMI 1330
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....sment 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 case, the Commissioner of Income Tax (Appeals) -12.....
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....re 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 have such a large margin of profit element. 5. The ld.DR, on the other hand, vehemently objected to this plea of the assessee stating that th....
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....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 scanned image is at page 3 of the assessment order. On verification of loose papers inventorised from the premises of M/s. Rekvina Laboratories Ltd. as Annexure BF1 Page N....
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....idences. 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, C5, C11 and A21) and the total income was determined at Rs.49,60,160/- against returned income of Rs.14,32,160/-." 7. The ld.counsel for the assessee has not challenged....
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....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 bungalows approximated on an average more than 50% of the price at which bungalows were booked as sold. Also the built up area of the bungalows sold approximates 160 sq. metres. Havi....