TaxTMI 
TaxTMI 
2022 (5) TMI 1670
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....rn arises out of an assessment order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") dated 28.12.2019. 2. Since, the issues involved in all the appeals are common and identical; therefore, these appeals have been heard together and are being disposed of by this consolidated order. For the sake of convenience, the grounds as well as the facts narrated in ITA No. 27/SRT/2021 for assessment year 2017-18, have been taken into consideration for deciding the above appeals en masse. 3. The grounds of appeal raised by the Revenue (in lead case) in ITA No. 27/SRT/2021 for AY.2017-18 are as follows: "1.On the facts and circumstances of the case and in law, the Id. ....
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.... a survey under section 133A of the Income Tax Act was conducted upon the assessee on 21.02.2018, at site office, Orion Villa, Naroli chaar Rasta, Silvassa and at other places. The assessee is in the business of construction and undertaken a project named in the style of "Orion Villa in Silvassa". During the course of survey proceedings, certain books of accounts, loose papers and whatsapp chats were found and impounded. On perusal of the impounded material, it was noted by the assessing officer that assessee has received 'on-money' on selling of residential units, where advances were received during the Financial Year relevant to assessment year 2017-18. During the scrutiny proceedings, the assessee was asked to explain why the 'on-money' ....
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.... ld CIT(A), keeping in view the facts of the assessee's case, restricted the addition @ 20% as net profit of the total gross receipts as income of the assessee. Aggrieved, by the order of ld CIT(A), the Assessee, as well as, Revenue, both are in cross appeals before us. 9. Shri Sita Ram Meena, Learned Sr. DR for the Revenue vehemently argued that addition worked out by the assessing officer should be sustained. He further stated that ld CIT(A) was not justified to restrict the addition @ 20% of the total gross receipts as income of the assessee. The ld CIT(A) ought to have confirmed the addition made by the assessing officer. 10. On the other hand, Shri Hardik Vora, Learned Counsel for the assessee begins by pointing out that addition....
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....Officer further mentioned in para no. 5.1 that there is no dispute with regard to the fact of receipt of 'on-money' from sale of units. This clearly shows that amount of Rs.2,57,76,000/- is business receipts, and since these are business receipts therefore these receipts are taxable as per the profit declared by the assessee in audited books of accounts. These facts have been admitted by one of the partner of the assessee firm, Mr. Rajesh Ahir, who has categorically admitted and accepted in his statement during the course of survey proceedings that two columns against each of the party A and B, out of which column B represents cash i.e 'on-money' and column A represent money received through cheques. The Assessing Officer mentioned these de....
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....ted 18th July 2014) has approved the action of the authorities wherein the rate of profit accepted in earlier years was adopted. Further it is the net profit and net income which has to be added and not the gross profit since indirect expenses are also incurred in the business. Lord Macnaghten, in the case of London County Council v Attorney-General 1901 AC 26, 35-6 (HL), 4 TC 265, 293, stated as follows: S "Income Tax, if I may be pardoned for saying so, is a tax on income. It is not meant to be a tax on anything else. It is one tax, not a collection of taxes essentially distinct." Therefore, net profit is taxable income. Hence, considering the facts and circumstances of the case, we direct the assessing officer to compute the net pr....