2013 (5) TMI 1002 - AT - Income Tax

Summary

Issues involved: Revenue's appeal against deletion of addition of on money receipts for assessment years 2003-04, 2004-05, and 2006-07.

Assessment Year 2003-04:
The assessing officer found that the assessee received on money of Rs. 16,46,970 over and above disclosed income. The gross receipt was taxed as income, leading to an addition of Rs. 8,95,300. The assessee argued that only net income should be taxed, citing various authorities. The CIT(A) considered seized documents showing expenses and ruled that only reasonable profit earned on on-money receipts should be taxed. Following a Tribunal decision, 15% of the on-money receipts were subject to tax, resulting in an addition of Rs. 1,47,150.

Assessment Year 2004-05:
Similar to 2003-04, the assessing officer added Rs. 4,70,970 to the income based on on-money receipts. The CIT(A) upheld the addition of Rs. 72,000, applying the 15% profit rule from the Tribunal decision.

Assessment Year 2006-07:
For this year, an addition of Rs. 1,66,500 was made to the income by the assessing officer. The CIT(A) sustained an addition of Rs. 27,750, following the 15% profit rule from the Tribunal decision.

The CIT(A) considered seized documents showing expenses and ruled that only reasonable profit earned on on-money receipts should be taxed. Following a Tribunal decision, 15% of the on-money receipts were subject to tax, resulting in specific additions for each assessment year. The Revenue's appeals were dismissed, upholding the CIT(A)'s order based on the Tribunal decision.