TaxTMI 
TaxTMI 
2025 (1) TMI 1353
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....urt (Honourable Mr. Justice Akil Kureshi and Honourable Ms. Justice Sonia Gokani) by order dated 21.02.2011 admitted the Tax Appeal on the following substantial questions of law. "A. Whether the Appellate Tribunal has correctly appreciated the facts on record so as to restrict the addition to Rs. 8,82,787/- as against addition of Rs. 4,82,938 worked out by the Assessing Officer in respect of undisclosed income from Shilpgram Scheme? B. Whether the Appellate Tribunal is right in law and on facts in reversing the order passed by the CIT (A) and thereby directing the Assessing Officer not to charge interest u/s. 158BFA(1) of the Act, when the delay was solely attributable to the assessee?" 3. At the outset, learned a....
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....) 1819912 7389656 Unaccounted Receipts → 68919912 The CIT(A) computed the undisclosed income as under:- Cost of land as Worked out 9,53,83,887 Estimated collection from sale of 416520 sq. yds. @ 351/- as worked out by appellant 14,61,98,520 Less:-shown in books 80,00,000 Less:-Disclosed in books 6,73,73,421 8,73,83,887 7,88,25,099 Profit 58,01,124 Value of unsold plot of 38000 sq. yds. @ Rs. 330/- per sq. yd. Sale Price - Profit Margin Disallowance u/s. 40A(3) 1,25,40,000 18,19,912 9,31,85,011 9,31,85,....
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....to the farmers on the basis of Annexure A/88, A/105, A/100 and A/110 when the cost of land as worked out from annexure A/12 was at Rs.9,53,83,887/- and duly confirmed by way of affidavits filed by the farmers from whom the land was purchased. Section 158BB clearly lays down that undisclosed income has to be computed on the basis of material found and seized during the course of search. There is no dispute that the AO has worked out the sale consideration on the basis of the seized document. Therefore, the cost of land has also to be worked out on the basis of seized document. This is an admitted fact that the CIT(A) has worked out the purchase cost of the land on the basis of seized material i.e. Annexure A/12, therefore, we do not find any....
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....of the assessee." 5. Respectfully following the aforesaid order of the Tribunal, we dismiss the ground taken by the Revenue and also partly allow the ground of the assessee by holding that the shares of the assessee be taken be taken to be 70% of the profit of the project. The CIT(A) has confirmed the profit in the hands of the assessee to the extent of Rs. 40,67,717/- being 70% of Rs. 58,01,124/-. Since the closing stock will get reduced in view of our finding given under para-7 of that order by Rs.45,40,000/-, the profit of the project will get reduced to Rs. 12,61,124/-, the assessee's share being 70% will come to Rs. 8,82,787/- and accordingly the addition of Rs. 40,67,717/- will get reduced to Rs. 8,82,787/-. In case the A....
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....s mandatory but the only plea of the learned AR is that the direction should be given to the AO to charge interest after giving reasonable time for filing the return from the date when the seized papers were handed over to the assessee because the assessee cannot be regarded to have committed a default during that period. The learned DR, on the other hand, relied on the order of the AO. After considering the rival submissions, we are of the view that the assessee cannot be held responsible for the period during which he/she could not be allowed the seized material to compile the return. The block return could not have been filed by the assessee without getting the seized material. We accordingly direct the AO not to charge the inte....