9911796707
TMI Blog2014 (7) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... siness profits consequent to declaration of additional income of Rs. 30 lakhs during survey. 3. Briefly stated, the assessee, a company engaged in the business of builders & developers and of civil construction following the method of accounting as per section 145 of the Income-tax Act, for recognizing the revenue generated from business activity and as such recognized the revenue on sale of residential premises during the year. A survey was conducted under section 133A of the Act at the assessee's place on 22.03.2007, during which, the statement of Director of the assessee's company Mr. Kishor Patel was recorded on oath. In the said statement, the Director of the assessee's company had declared a business profit of Rs. 30 lakhs for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atement of estimated profit prepared for the purpose of advance tax as on 15.03.2007 given on page no. 73 of his paper-book to show above the basis of the said estimate. In the said statement, profit as per trial balance was taken at 1.58,00,000/- and after deducting provision for interest on unsecured loan of Rs.16,00,000/- made on estimated basis, net profit on Rs.1,42,00,000/- was worked out for the purpose of advance tax. The ld. Counsel of the assessee has also invited out attention to the statement placed at page no. 99 of his paper-book giving the details of expenses incurred prior to survey and expenses incurred after survey. A perusal of the said details shows that the impugned expenses of Rs.8,17,7462/- comprised of expenses incur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... survey period against regular business income. We, therefore, set aside their orders on this issue and restore the matter to the file of the AO with a direction to consider and allow the claim of the assessee for the impugned expenses as regular business expenses on merit after the necessary verification Ground No. 1 and 2 of the assessee's appeal are accordingly treated as allowed for statistical purpose." The above said decision has also been followed in the case of M/s. Patel Builders and Developers Pvt. Ltd. vs. ITO in ITA No. 572/M/2011 vide order dated 03.01.2014 and further in the case of other group concern "M/s. DKP Engineers & Constructions Pvt. Ltd. vs ITO" ITA No. 573/Mum/2011 decided on 26.02.2014. In the present case, the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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