9911796707
TMI Blog2014 (4) TMI 1125X X X X Extracts X X X X X X X X Extracts X X X X ..... the said cases and the additions made/confirmed on this count stand deleted. - Decided in favour of assessee. After considering the fact that similar additions of estimated brokerage made on the basis of the same document seized, has been deleted by the Tribunal, we are of the considered opinion that the impugned additions confirmed by the Ld.CIT(A), on estimate basis and telescoping the same is not justified in the cases of Shri Rajeev C. Batra and Shri Karan P. Batra. Therefore, we set aside the impugned orders of the Ld.CIT(A) in the said cases and the additions made/confirmed on this count stand deleted. - Decided in favour of assessee. - ITA No. 7771/Mum/2010, ITA No. 1116/Mum/2011, ITA Nos. 7038 to 7043/Mum/2010, ITA Nos. 8058 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion when action u/s 132 was conducted. The project consisted of three apartments and one unit was claimed to have been sold by taking advance at the time of action u/s 132 of the Act. All the group members were assessed to income tax and had admitted real estate brokerage income in their respective returns. The AO noted that during the course of search the Batra Brothers admitted ₹ 70 lakhs as their undisclosed income in real estate brokerage and another ₹ 5 lakhs towards the profit on sale of one residential apartment in their building project Sudha . However, the undisclosed income was not reflected in any of the returns filed by the assessees. On verification of some of the entries in the seized materials at page no. 8 of An ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the sale consideration in cash. Similarly 800(C) means ₹ 80 lakhs cash. In view of this, the AO held that the assessee used to collect the brokerage in cash component and the brokerage received in cash will be 50% of the total brokerage. Accordingly, the AO held that the gross brokerage and the commission receipt declared by the assessees represent only 50% of the receipts of accounted and cheque transactions and therefore, the AO made further addition of 50% on an estimate basis. On appeal, in the cases of Shri Rajeev C. Batra and Shri Karan P. Batra, for the assessment year 2007-08, the Ld.CIT(A) upheld the action of the AO. Aggrieved by the impugned decisions, the assessees, Shri Rajeev C. Batra and Shri Karan P. Batra are in app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order in the case of Shri C.B. Batra and held that the assessee is receiving 50% of the brokerage in cash which is unaccounted in the books. I find, the Assessing Officer has taken this view on the basis of seized documents with regard to two properties namely Regiland Flat in 5th Floor and Flat at Sommerset Building. No independent enquiry from the purchasers has been made. I find, the CIT(A) had mentioned in para 11.1 of his order that at the outset it is to be mentioned that there is no clear cut evidence available to show that any cash component is involved in this transaction. Further the submissions of the assessee before the CIT(A) that the seized document relating to the residential flat was a trade enquiry which was sold two yea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee being brokerage and since the assessee being brokerage and since the assessee has not challenged the same, therefore, confirming the addition of ₹ 1 lakhs made by the Assessing Officer on estimate basis and telescoping the same in my opinion is not justified. I therefore, set aside the order of the Ld.CIT(A) on this issue, The ground raised by the assessee is accordingly allowed. 4.1 After considering the fact that similar additions of estimated brokerage made on the basis of the same document seized, has been deleted by the Tribunal, we are of the considered opinion that the impugned additions confirmed by the Ld.CIT(A), on estimate basis and telescoping the same is not justified in the cases of Shri Rajeev C. Batra and Shri K ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
