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TMI Blog2016 (5) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... ciliation and detailed break-up of total constructed areas for R.Y. 2007-08 and 2008-09 and closing stock as on 31.03.2008 and 31.09.2009 without giving the AO opportunity to offer his comments, in contravention to the provisions of Rule 46A of the I.T. Rules. 2) The Ld. CIT(A) has further erred in law and on facts in deleting the addition of Rs. 7,62,04,530/- made on account of undisclosed net profit, on the basis of additional evidences furnished before him by the assessee. 3) On the facts and in the circumstances of the case and in law, the CIT(A) ought to have upheld the addition of Rs. 7,62,04,530/-. 4) It is, therefore, prayed that the order of the CIT(A) be set aside and that of the A.O. be restored to the above extent. 2. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing some mistake in considering the turnover figure, the return was revised declaring the total income at Rs. 3,58,17,705/- on 30.09.2009. Considering the original return of income filed for an income of Rs. 11,20,22,235/- and the statement recorded u/s 132(4) during the search and the return of income filed in response to notice u/s 153C for Rs. 3,58,17,705/-, the Assessing Officer made the addition of Rs. 7,62,04,530/- being difference of Rs. 11,20,22,235/- and Rs. 3,58,17,705/-. The Assessing Officer has given the following reasons for making the addition of Rs. 7,62,04,530/-, which read as under:- "10. During the assessment proceedings, the assessee has produced books of account for FY 2007-08 and FY 2008-09 for verification which are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the provisions of Rule 46A of the IT Rules. Further, the ld. Departmental Representative submitted that the CIT(A)has erred in deleting the addition of Rs. 7,62,04,530/- made on account of undisclosed net profit on the basis of additional evidences furnished by the assessee. He, accordingly, pleaded that the order of the CIT(A) be set aside and that of the Assessing Officer be restored. On the other hand, ld. Authorized Representative for the assessee supported the order of the CIT(A). 3. We have heard the rival contentions and perused the material on record. We find that that the Assessing Officer had nowhere found fault in the books of accounts and the audited statements of the assessee. He has simply relied on the statement recorded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of FY 2007-08 and accordingly, in the net profit for the year under consideration, without affecting any amount or modification in the closing stock. Thus the figures related to sale of offices at 9th and 11th floor were considered as part of sales and closing stock as well. Therefore, this mistake was rectified by the assessee by filing revised return of income much before the receipt of notice u/s 153C of the Act. In this background, the CIT(A) rightly found that the mistake was genuine and the figures corroborated with the accounts. 3.2 The copy of the statement recorded u/s 132(4) was submitted by the assessee and from that statement, it was found that the statement recorded on 17.07.2009 during the search of one Shri Ujwal Kankaria, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of 9th and 11th floor in the books of BCPL. The books of account of BCPL were audited on 20.05.2008, which was more than one year prior to the date of search, i.e., 16.07.2009. This also establishes that the sales figures of 9th and 11th floor was wrongly included in the unaudited statement found during the search and were rightly accounted for in the audited accounts of FY 2008-09. The Assessing Officer has not contested that the sale proceeds of 9th and 11th floor were not accounted for in the books of account of the assessee. The same Assessing Officer has assessed the sales proceeds and the corresponding income of 9th and 11th floor in the assessment order for the AY 2009-10 passed by him on 30.12.2011, i.e., the same day when he pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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