TaxTMI 
TaxTMI 
2025 (7) TMI 1695
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....el for the opponent. 2. This Tax Appeal was admitted by order dated 24.04.2012 on the following substantial questions of law: "(1) Whether the Tribunal below committed substantial error of law in estimating 'on money' at the rate of 10% on the total booking receipts, which is based on conjectures and surmises; (2) Whether the Tribunal below committed substantial error of law in estimating receipt of 'on money' for the whole year that is to say, even for the post search period?" 3. The Income Tax Appellate Tribunal, Ahmedabad Bench "C" by the common Judgement and Order passed in ITA/1404/AHD/1999 for the Assessment Year 1993-94, ITA/1405/AHD/1999 for the Assessment Year 1994-95 and ITA/2538/Ahd/2000 for the Assessment Y....
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....Rs. 35 Lakhs for Assessment Year 1993-94 itself in case of another group company viz M/s. Labh Enterprises. 7. The Assessing Officer estimated 'on-money' on the basis of the receipts booked in the books of account and in the same ratio as the disclosed income of Rs. 35 Lakh in the hands of M/s. Labh Enterprises bear with the receipts from members amounting to Rs. 3.03 Crore booked in the books of M/s. Labh Enterprises as there was an admission on the part of the assessee with regard to receipt of 'on-money' without disclosing the quantum of ratio between 'on-money' and the books receipts. 8. The Assessing Officer therefore, made an addition of Rs. 81.55 lakh on the estimation of 'on-money' and after giving the benefit of disclosed amount ....
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....h total receipts are received at Rs. 88,11,720(Rs .69895612 - 61083892) on which on-money @ 10% comes to Rs. 8,81,172. It is seen that the appellant has accepted on-money in some of the projects and offered Rs.5 lacs in the year under consideration. Hence, a sum of Rs. 3,81,172 (Rs. 881172-50000) requires to be added. Therefore, the addition of Rs. 76,55,000 made by the Assessing Officer is restricted to Rs. 3,81,172 and balance Rs. 72,73,828 is directed to be deleted." 10. Being aggrieved by the order passed by the CIT(A), Revenue preferred an appeal before the Tribunal contending that CIT (Appeals) was not justified in reducing the estimate made by the Assessing Officer to come to the conclusion that there is no question of earning 'on-m....
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....h which was corroborated by the actual availability of cash found during the search itself-to the extent the assessee had admitted in the statement and in view of decision of Hon'ble Supreme Court in the case were unable to subscribe the view of the CIT(Appeals) that the assessee had not charged 'On-money' on the sale of flats involved in project named as "Sarjan". 10. Having held as above, the next question for us to be decided remains is to what should have been the quantum of 'on-money' and for that purpose, we are of the opinion that since the assessee itself has not objected to the rate of 10% applied by the CIT(Appeals), though, of course, on the receipts booked on flats other than flats in 'Sarjan', it will be quite appropriate to a....
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....dmitted to have charged 'on-money' on all projects relating to residential/commercial premises without there being any supporting evidence in support of such admission to make any addition. 16. On the other hand, learned advocate Mr. Dev Patel for the respondents appearing for the Revenue supported the finding of fact arrived at by the Tribunal and submitted that no question of law arises on the impugned order of the Tribunal as the Tribunal has made estimation only and therefore, it is mere a question of fact. 17. Having heard learned advocates for the respective parties and considering the submissions made by both the sides and on perusal of the findings of the Tribunal reproduced herein-above, it is apparent that the Tribunal has merel....