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Issues: The appeal challenges the order of the Ld CIT(A) regarding the addition of cash received from customers not recorded in the regular books of account and the deposition made by the assessee u/s 132(4) of the Act.
Issue 1 - Addition of Cash Receipts: The revenue contested the deletion of an addition of Rs. 71,67,000 made by the AO, representing cash received from customers not recorded in the regular books of account. The seized material during a search action revealed this unrecorded amount, with the Director of the Company admitting it as unaccounted sale receipt. The Ld CIT(A) directed the AO to consider this receipt as sale consideration in the year of sale of flats and tax the profit accordingly after considering expenditure for the same. Issue 2 - Deposition u/s 132(4): The revenue also challenged the failure of the Ld CIT(A) to consider the deposition made by the assessee u/s 132(4) that the advances received from customers were unrecorded. The Ld CIT(A) based the decision on the fact that the unrecorded cash receipts were related to the sale of flats, forming part of the sale consideration. The CIT(A) relied on previous decisions and held that the nature of the receipt was part of the sale consideration and should be taxed in the year of sale of the respective flat. The Ld CIT(A) justified the deletion of the addition and directed the AO to consider the unrecorded cash receipts as part of the sale consideration of the flats sold by the assessee. The decision was based on the nature of the receipt being part of the sale consideration, as confirmed by the assessee indirectly. The CIT(A) referred to previous decisions and concluded that the unrecorded cash receipts should be taxed in the year of sale of the respective flat. The Tribunal upheld the CIT(A)'s decision, confirming the dismissal of the revenue's appeal.
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