TaxTMI 
TaxTMI 
2026 (6) TMI 213
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.... Section 250 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act' in short) for Assessment Year 2015-16. 2. The assessee has raised following grounds of appeal:- "1. The CIT(A) erred in law and in the facts of the case in confirming the order of the Assessing Officer in exercising jurisdiction u/s 147 of the Act. 2. The CIT(A) erred in law and in the facts of the case in confirming the order of the AO in making addition of Rs. 6,00,07,464/- on account of liabilities u/s 68 of the Act. 3. The CIT(A) erred in law and in the facts of the case in confirming the order of the AO in making addition of Rs. 39,13,920/- on account of opening capital u/s 68 of the Act. 4. The CIT(A) erred in law and ....
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....of the assessee and confirmed the additions made by the Assessing Officer. 5. Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal. 6. Before us, the Ld. AR reiterated the submissions advanced before the lower authorities and further filed detailed paper book containing reconciliation of current liabilities, capital account and business receipts. The Ld. AR also submitted that the Assessing Officer has made additions in a summary manner, without properly appreciating the nature of the assessee's business and without examining the evidences placed on record. With regard to the addition u/s 68 on account of liabilities, it was submitted that the same represents advances received in the course of bu....
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....come on the differential amount. 7. The Ld. DR, on the other hand, relied upon the orders of the lower authorities and submitted that the assessee had failed to furnish necessary evidences during assessment proceedings and therefore the additions were rightly made and confirmed. 8. We have carefully considered the rival submissions and perused the material available on record including the additional evidences filed before us. 9. Validity of Reopening The first issue relates to the validity of reassessment proceedings initiated u/s 147 of the Act. From the record, it is evident that the reopening was based on specific information relating to high-value property transactions, cash deposits and non-filing of return of income. The ....
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....over. 10.2 Heard the arguments of both the parties and perused the material available on record. The total amount received by the assessee during the year is Rs. 6,00,55,729/-, out of which the advances from customer was Rs. 3,38,00,097/-. Out of these receipts, the assessee has offered an income of Rs. 72,93,097/- in the return of income filed u/s 148 of the Act. Out of the advances received of Rs. 3.38 Cr., the assessee has returned Rs. 20 lakhs and Rs. 25 lakhs on account of cancellation of deeds. Out of the total amount of receipts, the amounts received from father of the assessee namely Shri Usman Ghanchi was Rs. 33,00,000/-, thus leaving the total balance receipt of Rs. 1,87,77,000/-. Unsecured loans received from father Shri Us....
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.... embedded in such receipts would meet the ends of justice. The undisclosed turnover after the examination of the entire transactions was found to be Rs. 1,87,77,000/-. The regular gross profit offered by the assessee of Rs. 72,23,097/- over the turnover of Rs. 6,00,55,729/- works out approximately 15%. Considering the nature of business of the assessee dealing in purchase and sale of land plots, volume of transactions and overall facts and circumstances of the case, we therefore deem it fair and reasonable to tax the income attributable to such disputed receipts at 15% of the total business turnover. The total amount of tax on the undisclosed turnover works out to Rs. 28,16,655/-, which shall be treated as additional income from regular bus....