TaxTMI 
TaxTMI 
2008 (1) TMI 1018
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....ed "on money" on sale of flats/tenements of Ravi Ratna Park Project and admitted concealed income of Rs. 15 lacs in the case of the company and another Rs. 11 lacs in other group of cases. The Assessing Officer on 31st August, 1988 passed an order under Section 158 BC read with 158 BD of the Act for block assessment for the period 1985-86 to 21.12.1996. The Assessing Officer made various additions on the following basis: "a) During course of search, voluminous incriminating were also seized which contained information regarding charging of "on money" at different rates for different types of premises. On the basis of these, the AO estimated that the assessee had earned "on money" of Rs. 2,48,52,961/- on sale of flats in various projects. This included extra money charged by the assessee from certain tenement holders who were given larger land area. After considering all the relevant factors and also written submissions of the assessee, an addition of Rs. 2,48,52,961/- was made. (b) An addition of Rs. 82,43,909/- was made on account of unaccounted expenditure on the basis of seized material out of which Rs. 28,17,909/- was made on substantive basis, whereas addi....
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....ssessee company, recorded on 25.12.1996 and again on 8.1.1997 constitute unequivocal admission of on money charged by the assessee company. These sworn statements are corroborated by seized documents and records from the premises of the assessee company. Shri Chandrakant R.Patel submitted an affidavit during the assessment proceedings resiling from the aforesaid sworn testimony. However, it is to be borne in mind that the admission of the Director regarding charging of on money on the booking of flats is corroborated by documents seized during the search operations. Admission made by the assessee during search operations constitute substantial evidence in view of Section 17 and 21 of the Indian Evidence Act. The admission is fully corroborated by documents and records which are in culcatory in nature. The affidavit of the Director filed by the assessee company is in our opinion merely a self serving document and does not deserve any weight. A very heavy onus lay upon the assessee to refute and controvert the admission made at the time of search operations and the said onus has not been discharged in the instant case. Since the Ld. counsel for the assessee very candidly submitted th....
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....a land as conceded by the ld. counsel before us) is broadly based on adopting the on money received per unit @ 30% of the price fixed by the Govt. So various factors, like location of blocks as well as the flats, reasurement of plot of land attached thereto etc. have been taken into consideration while adopting the aforesaid estimate. The fact that the director of the company in his statement before the tax authorities has indicated the aforesaid figures of on money charged and reiteration of this on money figure before us by the Ld. counsel have also been relevant consideration with us. 18. One of the contentions raised by the Ld. counsel, which remains to be considered by us, is that on money receipts on booking of flats can be brought to tax only in the years during which conveyance deeds in respect of the flats are executed and sales thereof are complete. According to the Ld. counsel, on money receipts cannot be taxed during the block period, since no deeds are executed. We are not persuaded to accept the arguments o the Ld. counsel on money received by the assessee in cash outside the books of account at the time of booking of the flats is over and the advance money p....
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....ses for which documents have not been found during the search operations. In the circumstances of the case, we feel that deduction on account of expenses may be estimated at 30% of the on money receipt of Rs. 64 lakhs indicated above. On this basis, the AO would allow deduction of Rs. 19.20 lakhs. We would accordingly uphold the addition of Rs. 64 lakhs \026 19.20 lakh = Rs. 44.80 lakhs as against Rs. 2,48,52,961 added by the AO on account of on money receipts. The balance addition of Rs. 2,03,72,961 is deleted. This disposes of ground No.4 in the assessee's appeal." Revenue as well as assessee filed appeals before the High Court and raised the following questions of law arising from the order of the Tribunal for its consideration. Assessee's questions of law read thus: a. Whether in the facts and circumstances of the case, the ITAT was right in law in holding that the assessment proceedings were not barred by the period of limitation? b. Whether in the facts and circumstances of the case, the ITAT was right in law in estimating "on money" receipt at Rs. 64,00,000/-? c. Whether in the facts and circumstances of the case, the ITAT was right in holding t....