TaxTMI 
TaxTMI 
2026 (5) TMI 1328
X X X X Extracts X X X X
X X X X Extracts X X X X
....s completed under section 143(3) on 31.03.2015, determining total income at Rs. 1,47,12,140/-. 3. Subsequently, based on information gathered during survey proceedings in the case of the Neminath group, to which the assessee belongs, it was observed that incriminating material was found indicating receipt of "on-money" by the assessee in respect of sale of flats. The Director of the assessee company had, in his statement recorded during survey on 16.10.2015, admitted receipt of such on-money. Accordingly, reassessment proceedings were initiated under section 147 by issuance of notice under section 148 dated 06.03.2017, and the assessment was completed under section 143(3) r.w.s. 147 on 29.12.2017, wherein an addition of Rs. 43,31,000/- was made on account of alleged "on-money". 4. The matter travelled up to the Tribunal and the Co-ordinate Bench, vide order in ITA No. 2381/Mum/2023 dated 30.11.2023, set aside the order of the CIT(A) on the issue of addition of on-money and restored the matter to the file of the Assessing Officer with a direction to examine whether the five flats referred to in the order were sold during the relevant previous year and also to adjudicate the is....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... well as the incriminating material found during the survey. The contention of the assessee that such "on-money" could be taxed only in the year of sale was rejected by observing that the same represented unexplained money found during the course of survey. Accordingly, the Assessing Officer held that the amount of Rs. 43,31,000/- constituted undisclosed income of the assessee and brought the same to tax as unexplained money under section 69A of the Act. 8. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee reiterated the submissions made before the Assessing Officer and further contended that the Assessing Officer had failed to comply with the specific directions of the Tribunal, particularly with regard to examining whether the five flats in question were sold during the relevant previous year. It was submitted that the assessee had furnished documentary evidences including registered agreements, Index II copies, commencement certificates and other property-related documents, which were not properly appreciated by the Assessing Officer. The assessee further submitted that the statement of the Director relied u....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ng entire additions that AO had made by not adhering to specific direction of Hon ITAT to examine agreements or any other documents that assessee may furnish to decide whether sale of flats specified in its order have been made during this Financial Year when the assessment was set aside. Without Prejudice 2. The Learned CIT (A) erred in facts and circumstances of the case and and in law by confirming addition to the extent of an adhoc NP ratio on alleged on money received that AO made U/S 69A when the appellant was not seen to be the owner of any money, bullion, jewellery or any valuable article not recorded in the books of accounts found during the survey. 11. During the course of hearing before us, the learned Authorised Representative (AR) of the assessee submitted that in the earlier round of litigation, the Co-ordinate Bench in ITA Nos. 2380 & 2381/Mum/2023 vide order dated 30.11.2023 had restored the issue to the file of the Assessing Officer with a specific and limited direction to examine whether the five flats in the Kurla-Mangal Prabhat CHSL project were actually sold during the year under consideration and thereafter decide the taxability of the all....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cording to the learned AR, such action of the Assessing Officer amounts to travelling beyond the scope of the remand directions issued by the Tribunal, which were confined only to verification of the sale of the identified five flats and consequential determination of taxability of the alleged on-money. 15. The learned Departmental Representative (DR), on the other hand, strongly relied upon the order of the Assessing Officer and supported the addition made therein. It was submitted that the directions of the Co-ordinate Bench in the earlier round were general in nature and did not specifically restrict the enquiry to any particular flat numbers. The learned DR further contended that the assessee had merely furnished general and incomplete information during the course of assessment proceedings and failed to substantiate its claim with cogent documentary evidence. Drawing our attention to the show cause notice as well as the assessment order, it was submitted that the assessee did not provide complete details of all the flats as called for by the Assessing Officer and had only furnished selective extracts of agreements in respect of a few flats, which were insufficient to discha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....eds now furnished by the assessee were not examined by any of the lower authorities. Further, we find that only in respect of three flats the assessee has furnished the sale deed in support of the submission that these flats were not sold in the year under consideration. Therefore, in view of the facts and circumstances as noted above, we deem it appropriate to restore this issue to the file of the AO for de novo adjudication, as per law, after examination of all details as may be submitted by the assessee. In the interest of justice, one more opportunity is granted to the assessee to submit all details to substantiate its claim. Since the assessee is a builder and developer, the AO, while adjudicating this issue, is also required to take into consideration whether the assessee has followed the percentage of completion method or project completion method for recognising its revenue and cost. As a result, the impugned order to this extent is set aside and grounds no. 1-5 raised in assessee's appeal are allowed for statistical purposes." 20. From a plain reading of the aforesaid directions, it is evident that the scope of the set aside proceedings was clearly delineated and confin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....7,50,000 73,50,000 13,125 B/1103 560 10.12.2011 72,00,000 14,50,000 86,50,000 15,446 B/1104 560 10.12.2011 72,00,000 12,30,000 84,30,000 15,054 TOTAL 43,31,000 23. Further, from the material placed on record, including the statement of the Director and annexures referred to therein, it emerges that the alleged "on-money" receipts were stated on a consolidated basis across multiple projects and spread over different financial years. The Co-ordinate Bench has already taken note of this aspect and recorded a finding that the admission was not year-specific but project-wise and year-wise. 24. In this backdrop, the core issue which required adjudication in the set aside proceedings was whether the alleged cash component pertaining to the five identified flats could be said to have accrued during the year under consideration, which in turn depended upon the factum of sale of such flats during the relevant year. We further find that the assessee had furnished documentary evidences in respect of certain flats indicating that the agreements were executed in subsequent years and had ....