9911796707
TMI Blog2022 (8) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... HIGH COURT] AND PRESIDENT INDUSTRIES. [ 1999 (4) TMI 8 - GUJARAT HIGH COURT] and after considering that the assessee had shown net profit at 4.55% for the assessment year under consideration and 4.59% for A.Y. 2010-11 in the books of account and considering the fact that the project undertaken by the assessee comes under deduction of Section 80IB(10) of the Act, 1961, there was no intention on the part of the assessee to disclose the lower rate of profit and in that view of the matter, the Tribunal estimated 6% net profit of total on-money receipts. Tribunal has not committed any error in estimation of 6% of net profit on the total on-money receipts of the respondent assessee and as such there is no legal infirmity in the impugned order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee for deduction u/s 80IB(10) for consideration of profit @ 6% despite the assessee not pressing such claim? III. Whether the Hon ble ITAT was right in considering the claim of the assessee for profit component of 6 % on money receipts despite the rejection of books of accounts u/s 145(3) being found proper? 4.1 It is pertinent to note that the question No.II raised by the appellant does not arise out of the order of the Tribunal, as the Tribunal has not given any finding with regard to disallowance of deduction under Section 80IB(10) of the Act, 1961, as the same was not pressed by the respondent assessee during the course of hearing of the appeal before the Tribunal. 5. The brief facts of the case are as under : 5.1 The re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 02,368/- as undisclosed income and further disallowed the deduction claimed by the assessee under Section 80IB(10) of the Act, 1961 amounting to Rs.30,23,019/- and thereby determined the total income of Rs.5,11,07,459/- by passing the assessment order on 9th December, 2011. 5.3 The assessee being aggrieved preferred an appeal before the CIT (Appeals) who by order dated 1st February, 2013 dismissed the appeal and upheld the assessment order observing that the housing project was got approved by the assessee from the local authority on 9th July, 2008 and therefore, the basic condition of Section 80IB(10) of the Act, 1961 was not fulfilled. With regard to the addition for undisclosed income the CIT (Appeals) held that the assessee not only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ey on account of suppression of receipts from the customers by the assessee claiming various expenses paid through cash in the revised Profit Loss account so that the net income remains the same. It was also pointed out that in support of its claim of expenses under various heads, the assessee has produced self-prepared cash vouchers, wherein, payment less than Rs.20,000/- is shown in each voucher, however, none of the persons to whom the payment is made are produced by the assessee before the survey team nor any voucher was produced during the course of survey. It was submitted that the closing stock was also increased to Rs.14,74,60,675/- and it is improbable that the income and expenditure would be the same. It was submitted that the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... embedded in such receipts and not the entire receipts themselves. If that were the legal position, what should be estimated as a reasonable profit out of such receipts, must bear an element of estimation. 9. The Tribunal thereafter relied upon the decision in case of CIT Vs. President Industries reported in [2002] 258 ITR 654 (Gujarat) and also CIT Vs. Abhishek Corporation reported in [2000] 158 CTR 374 (Gujarat) to hold that, in case of on-money receipts, only profit embedded therein is to be taxed and not the entire money receipts. The Tribunal following the decision of this Court, therefore, came to the conclusion by estimating the net profit @ 6% as under : 13. In the light of above discussion, and respectfully following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r A.Y. 2010-11 in the books of account and considering the fact that the project undertaken by the assessee comes under deduction of Section 80IB(10) of the Act, 1961, there was no intention on the part of the assessee to disclose the lower rate of profit and in that view of the matter, the Tribunal estimated 6% net profit of total on-money receipts of Rs.4,72,02,368/-. 11. In our view, the Tribunal has not committed any error in estimation of 6% of net profit on the total on-money receipts of the respondent assessee and as such there is no legal infirmity in the impugned order of the Tribunal giving rise to any question of law, much less any substantial question of law, proposed or otherwise. The present Tax Appeal is therefore, summa ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
