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TMI Blog2022 (8) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidered the submissions and after verifying the records, he determined the average profit earned by the group in the project Shakti Lake City @18.8%. CIT(A) estimated the same percentage of profit in the case of Shree Rudra also, considering the fact that AO also treated all the projects run by the group are similar. Since the Coordinate Bench has adjudicated the issue involved in the case of Shri Parth Vinod Gadhiya and the project of Shakti Lake City and Coordinate Bench sustained the findings of the CIT(A) in the case of above project. Therefore, the project involved in this case are also part of the same and similar projects carried on by the assessee, we deem it fit and proper to sustain the findings of the CIT(A) and we do not fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of search certain documents belonging to assessee were found. Accordingly, notice u/s. 153C of the Act was issued and served on the assessee. In response assessee filed return of income for the A.Y.2015-16 on 23.12.2017 declaring total income of ₹.1,41,84,870/- and Assessing Officer treated the return of income filed by the assessee as compliance to notice u/s. 153C of the Act. Thereafter notice u/s.143(2) and 142(1) of the Act were issued and served on the assessee. In response Ld. AR of the assessee attended and submitted the relevant information as called for. 5. The Assessing Officer observed that the documents and information found during search belonging to the Gadhiya Group and observed that Shri Bipin L. Gadhiya who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dopted average profit ratio in Shakti Lake City for above said three years at 18.8%. Ld.CIT(A) keeping in line with the decision of the Shri Parth Vinod Gadhiya case he also determined he average profit @18.8%. Accordingly, he partly allowed the appeal filed by the assessee. 7. In appeal before the Ld.CIT(A), assessee has raised several other grounds relating to no incriminating material found during search, the order passed u/s. 153 of the Act is invalid; the Assessing Officer has passed the Assessment Order u/s. 153C r.w.s. 143(3) of the Act without giving proper opportunity and violation of principles of natural justice and further, addition made by the Assessing Officer on account of unaccounted money. After considering the submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expenditure related to the business recorded in some impounded records) by wrongly holding that there is uncertainty in revenue being received and therefore by applying Accounting Standard-9 no income has accrued, overlooking the fact that the receipts and payments were in the form of unrecorded cash transactions, and accounting standards were not applicable on the same. 2. On the facts and circumstances of the case, the Ld CIT(A) has erred in applying the estimated profit on the basis of his order in the case of Parth Gadhiya in appeals orders No. CIT(A)-53, Mum/10664/10675/10671/2017-18 dated 06.07.2021 (for A.Ys. 2014-15, 2015-16 2016-17), wherein he has wrongly held that there is uncertainty in revenue being received and therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... @45.76% and he adopted the same percentage to estimate the profit in the other projects also. Therefore, the Assessing Officer has estimated the profit in Shree Rudra project also @45.76% and we observe that Ld.CIT(A) considered the submissions and after verifying the records, he determined the average profit earned by the group in the project Shakti Lake City @18.8%. Ld.CIT(A) estimated the same percentage of profit in the case of Shree Rudra also, considering the fact that Assessing Officer also treated all the projects run by the group are similar. Since the Coordinate Bench has adjudicated the issue involved in the case of Shri Parth Vinod Gadhiya and the project of Shakti Lake City and Coordinate Bench sustained the findings of the Ld ..... X X X X Extracts X X X X X X X X Extracts X X X X
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