9911796707
TMI Blog2021 (12) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... of alleged on money received on sale of flats. 3. Briefly the facts are, the assessee is a resident company and is stated to be engaged in Real Estate Development. A search and seizure operation under section 132 of the Income Tax Act, 1961 was carried out on 26.05.2011 in case of M/s Rohan Developers Pvt. Ltd. and other companies and entities promoted by Shri Haresh N Mehta and late Jitendra N. Mehta as well as in the residential premises of the Directors and employees of the entities being part of Rohan Group. In course of search and the seizure operation incriminating material, being page No. 114, Annexure 1-A was found and seized from Flat No. 112- 122, Hira Bhawan, Raja Ram Mohan Roy Road, Prathna Samaj, Mumbai. It is alleged, the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dicate receipt of on money by various entities in the group. He observed, the retraction of statement after considerable time lapse is only an afterthought. Further, he observed, in case of other group entities, such as, M/s Rohan Developers Pvt. Ltd., Goodwill Properties Pvt. Ltd. and M/s Silver Arch Builders & Promoters Pvt. Ltd. receipt of on-money was also found. Thus, he ultimately concluded that the assessee had received on-money on sale of projects developed by it. Further, while rejecting assessee's contention that the seized document only mentioned one project, AO observed that when the assessee has received on money in respect of one project, it has to be assumed that it is a regular practice of the assessee. Hence, he must have r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us, modifying the order of the AO, learned Commissioner (Appeals) directed him to add 30% on the gross sales of Shiddhesh Jyoti E and F Wing towards on money receipt. 6. Learned counsel for the assessee submitted, based on a single seized document found in a search conducted in case of some other entity, additions have been made in case of the assessee on account of on money. She submitted, entries in the seized document relating to assessee's project were properly explained by Ms. Chaulla Joshi, who was employee of the Rohan Group. She submitted, except the two figures of 18,000/- and 5,400/- mentioned against Siddhesh Jyoti E & F wing Project nothing else appears in the seized document. Thus, she submitted simply based on the entries fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee for assessment years 2007-08 to 2012-13. Whereas, based on very same information received during the search and seizure operation, regular assessments were made under section 143(3) of the Act for assessment years 2013-14 and 2014-15. It is evident, the genesis of the additions made on account of on money received is the seized document being, page No. 114 of Annexure 1. In course of search and seizure proceedings carried in case of Rohan Group of entities, statements were recorded under section 132(4) from Directors of the Companies as well as some of the employees. On a perusal of the seized document, being page No. 114 of Annexure I, a copy of which is at page 9 of the paper book and also reproduced in the impugned order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Ms. Chaulla Joshi, a specific query was raised regarding the figures appearing against Siddhesh Jyoti E & F Wing. In reply, it has been stated that the figures of Rs. 18,000/- represent the quoted price for per square feet carpet area and the figure of Rs. 5,400/- represent rate per sq.ft. of built up area to arrive at the lump sum registered aggregate value. Except these evidences no other concrete evidence is available with the AO to establish on record that on money was actually received by the assessee. Therefore, proper enquiry has to be made with regard to the entries appearing in the name of Siddhesh Jyoti E & F Wing, as mentioned in seized document. 11. In course of hearing, it was brought to the notice of the Bench that based on ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
