2025 (12) TMI 1426

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.... individual derives income from real estate business. A search and seizure operation under Section 132 of the Income-tax Act, 1961 (for short "the Act") was conducted in the case of Shahnawaz Group on 25.10.2017. Consequent to search, notice under Section 153C of the Act, was issued to the assessee and in response to the said notice, the assessee filed his return of income for A.Y. 2016-17 on 13.12.2019, admitting total income of the assessee at Rs. 20,66,692/-. The case was selected for scrutiny and during the course of assessment proceedings, the A.O. noticed that, during the course of search, in the case of Shri Shahnawaz, it was seen that, additional income of Rs. 40,00,00,000/- was disclosed under Section 132(4) of the Act, in the hand....

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....assed by the A.O. under Section 143(3) r.w.s. 254 dated 09.06.2023, the assessee filed an appeal before the Ld. CIT(A) and challenged the additions sustained by the A.O. for Rs. 8,82,278/- on the ground that, the assessee has offered additional income under two heads. One is under the head 'income from real estate business activity' and another one is under the head 'income towards discrepancies and errors in gross receipts/expenses'. The A.O. considered the income offered in the hands of the assessee and Mohammad Zubairuddin on account of income towards discrepancies and errors in gross receipts/expenses, however, failed to consider and give telescoping towards additional income offered under the head real estate business activity. If we c....

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....O. towards difference between income admitted as per Section 132(4) of the Income Tax Act and income returned as per return of income filed under Section 153C of the Income Tax Act. The assessee has explained the difference and claimed that, the assessee and Shri Mohammad Zubairuddin have offered income under two heads. However, the A.O. has considered only the income under one head and ignored the income declared under the other head even though said income pertains additional income disclosed during the course of search under Section 132(4) of the Act. Although the assessee claims that, sum of Rs. 8,82,278/- is offered in the name of other family members, but finally upon verification of relevant facts, noticed that, the said income was a....

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....hould be upheld. 8. We have heard both parties, perused the material available on record and had gone through the orders of the authorities below. We have also carefully considered the relevant evidence submitted by the assessee, including the statement of total income of Shri Shahnawaz and Shri Mohammad Zubairuddin for A.Y. 2016-17. Initially, the A.O. made addition of Rs. 66,54,448/- towards difference between income admitted under Section 132(4) of the Act, and income returned as per return of income filed under Section 153C of the Act. In consequential assessment proceedings, as per the directions of the Tribunal, the A.O. allowed relief to the extent of Rs. 57,72,170/- on the basis of return of income filed by Shri Shahnawaz and Shr....