TaxTMI 
TaxTMI 
2025 (3) TMI 2001
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....given by the Runwal Group, the AO assessed the above amount in the hands of the assessee as un-explained cash u/s. 69C of the Act. The Ld.CIT(A) also confirmed the same. 3. The Ld.AR submitted that an identical addition was made in the hands of another assessee, named, Shrirang Vijay Rao and the said addition was deleted by the Co-ordinate Bench of the Tribunal vide its order dt. 03-08-2022 in ITA No. 812/Mum/2021 (AY.2015-16). Hence, we notice that the above said decision rendered by the Co-ordinate Bench of the Tribunal shall be applicable to the facts of the present case. Accordingly, we extract below the decision rendered by the Tribunal in the above said case:- "4. The facts in brief are that the assessee has filed Return of Income declaring income of Rs. 59,81,000 on 24.08.2015. The assessment was reopened on the basis of information received from DDIT, Mumbai that during the course of search action in the case of M/s.Runwal Group on 21.11.2014 was revealed that the group was indulged in executing cash transactions with several parties for the sale of flats in their projects viz. "Runwal Green". On the basis of such information it was pointed out that the assessee....
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....1 Project namely Runwal Greens Towers -1,2 & 3 and Commercial Rs. 31,14,02,412/- 2 Project namely Runwal Greens Towers 4, 5, 6, 7 & 8 Rs. 31,52,99,960/- Total Rs. 63,39,52,372/- It is not disputed that the on-money on the basis of the seized material received by the assessee comes to Rs. 19,94,78,821/- out of which the addition of Rs. 72,50,000/- has already been confirmed by us and has been duly taken in to account by the assessee in the revised computation of income submitted by the assessee during the course of hearing before the Assessing Officer and on which the assessee has duly paid the tax. Now the question before us remains to the disputed addition amounting to Rs. 62,67,02,372/- The total on money on the basis of the seized material found during the course of search relate to the period of the booking done from March 2014 to November 2014. The amount so worked out comes to 19,94,78,821/- as detailed under:- On-money of flats as per seized material-Rs. 13,44,68,725/- On-money of shops as per seized material - Rs. 6,50,10,096/- Out of the said sum 72,50,000/- has already been confirmed by us in the preceding paragraph, therefore, on-money on flats as per seiz....
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....atement which has two pages. Q.18 As per the working submitted as part of annexure to answer to question number 16, the amount of on money accepted in the project namely Runwal Greens (M/s Runwal Homes Private Limited), is Rs. 63,39,52,372/- Please confirm ? Ans: Sir, due to reasons mention above I confirm the amount of Rs. 63,39,52.372 A (which as per Annexure-1), as the on money accepted in the projects Runwal Green (M/s. Runwal Homes Private Limited), and the same has been offered as additional income over and above the income declared in the M/s. Runwal Homes Private Limited. Here / want to state that Olive project is under the proprietorship of Mr. Subhash Runwal." We have gone through the answer to question nos. 16, 17 and 18. We noted that in reply to question no.16, Director of the assessee company stated that initially the project was joint venture with HDFC Limited. Subsequently, when the market has become more competitive and due to the opening of the forest land they had to sell aggressively, in order to achieve the numbers from the calendar year 2014 and, therefore, in order to accommodate few customers who wanted to pay part consideration in....
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....nd during the course of search, in our opinion, no addition can be sustained. There cannot be any agreement against the statute. The assessee agreed for declaration of the income for which no material was found merely to avoid protracted litigations with the department and buy peace. The assessee has earned income; the onus is on the Revenue to prove that the income has accrued to the assessee. Even otherwise also since there has been a search in the case of the assessee, if the assessee would have earned such income there must have been some evidence found that either the assessee has made investment outside the books of account or has spend this income in one way or the other. Income tax is leviable u/s. 4 of the I.T Act on the real income. If income has not accrued or received by the assessee, the assessee cannot be burdened for income tax liability. From the documents available on record, it is apparent that the Assessing Officer has estimated the booking amount and non that basis assumed that the assessee would have received the on-money. He made the presumption as if the assessee has sold all the flats @15750/- per sq. ft and the shops @26000/- per sq. ft. From the documents ....