TaxTMI 
TaxTMI 
2025 (10) TMI 197
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....red in law as well as on fact of the case in treating Rs. 3600000/- as contract income and making an addition of Rs. 288000/- being 8% of Gross contract income as income from undisclosed sources which is totally wrong, illegal and excessive in nature. 3. That initiation of proceedings u/s 153C of IT Act is totally wrong and illegal as No satisfaction Note was recorded by assessing officer of searched person which is mandatory requirement for initiation of proceeding u/s 153 of IT Act. Thus whole of proceeding U/s 153C and assessment made there under are totally wrong, illegal and excessive in nature. 4. That the learned CIT(Appeals) has wrongly relied on some figures written by third person as belonging to appellant firm evidencing No name, No signature of appellant or Third person. Thus allegation of assessing officer to estimate cash payment as gross contract receipt of appellant. Thus the assessment framed on estimate and wild guess work is totally wrong illegal and excessive in nature. 5. That learned C.I.T (appeals) has relied upon material gathered at the back of the appellant without confronting the same to the appellant, there by violating the pri....
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....ature. 3. That the learned CIT(Appeals) has wrongly relied on some figures on loose papers which have been written by third person as belonging of appellant firm evidencing No name, No signature of appellant or Third person. Thus allegation of assessing officer to treat cash payment as gross contract receipt of appellant. Thus the assessment framed is totally wrong illegal and excessive in nature. 4. That learned C.I.T (appeals) has relied upon material gathered at the back of the appellant without confronting the same to the appellant, there by violating the principle of natural justice. Thus the addition made on violating the principle of natural justice is totally wrong and illegal. 5. That learned C.I.T (Appeals) has further erred in law as well as on facts of the case in not adjudicating all grounds of appeal raised by appellant. Thus order by learned C.I.T (Appeals) without speaking order on all grounds is totally wrong, and illegal. 6. That the appellant craves leave to add, delete or amend or rectify any ground or grounds of appeal at the time or before time of hearing." 3. From going through the order sheets of the above captioned App....
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....ade by Sh. Mukul Joshi to the assessee as the assessee company never denied of receiving the money from Mr. Mukul Joshi and secondly, it cannot be accepted the part of payments received in cheque are genuine and cash payments mentioned on the same document are bogus. In view of this, AO treated the amount of Rs. 36,00,000/- received in cash by assessee as contracts receipts for construction of aforesaid house and invoking the provisions of section 44AD of I. T. Act, applied the rate of 8% on the gross receipts, which comes to Rs. 2,88,000/- and added this amount as its additional income and completed the assessment proceedings." 5. Aggrieved by the Assessment order, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 16/01/2018 dismissed the Appeal filed by the Assessee. Aggrieved by the order of the Ld. CIT(A), the Assessee preferred the present Appeal on the Grounds mentioned above. 6. The Ld. Departmental Representative vehemently submitted that the order of the A.O. as well as the Ld. CIT(A) does not suffer from any infirmity or error. By relying on the orders of the Lower Authorities submitted that the Grounds of Appeal of the Assessee....
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.... Rs. 33,00,000/- on various dates were given by Sh. Mukul Joshi to appellant as admitted by him, why the doubts have been raised regarding the cash payments made by Sh. Mukul Joshi on various dates to appellant as mentioned on the same page. The contention of appellant cannot be accepted that the cheque payments, which have been recorded in its regular books of account are genuine and authentic but the cash payments, which are undisclosed and out of books of account, are not genuine and correct, though both types of transactions are on the same page. The appellant has also failed to contradict the statements given by Sh. L. K. Yadav who admitted during the recording of statements that the cheque payments of Rs. 33,00,000/- as well as cash payments of Rs. 36,00,000/- were made by Sh. Mukul Joshi to Mr. Vinod Saini of M/s Sal Chandra Construction Ltd., the appellant and these amounts were given for the purpose of construction of his property at Noida. Thus, there remains no doubt about the authenticity of document and validity of transactions mentioned on this paper. In this way, the AO has been liberal in estimating the profit @8% of gross receipts of Rs. 36,00,000/- as per the prov....
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....jected during the assessment proceedings by submitting that the payments were not received by it, but the AO did not accept his version and concluded that the payments were made by members of AMQ group to the assessee as the assessee company never denied of receiving the money. In view of this, AO treated the amount of Rs. 1,10,32,137/- received by assessee as contract receipts for construction of aforesaid properties and invoked the provisions of section 44AD of I. T. Act, applied the rate of 8% on the gross receipts, which comes to Rs. 8,82,570/- and added this amount as its additional income and completed the assessment proceedings. 10. Aggrieved by the Assessment Order, the Assessee preferred an Appeal before the Ld. CIT(A). The Ld. CIT(A) vide order dated 16/01/2018, dismissed the Appeal filed by the Assessee. Aggrieved by the order of the Ld. CIT(A), the Assessee preferred the present Appeal on the Grounds mentioned above. 11. The Ld. Departmental Representative vehemently submitted that the order of the A.O. as well as the Ld. CIT(A) does not suffer from any infirmity or error and the Grounds of Appeal of the Assessee are devoid of merit, therefore, sought for dismissa....