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TMI Blog2022 (9) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... regard, the Ld. AR brought our attention to the affidavits filed by the assessee and submitted that during the relevant period the assessee was fully engaged in shifting of his office from Vijayawada to Hyderabad because of lack of business avenues at Vijayawada and this consumed time and moreover because of change of assessee's address, the CIT(A)'s order could not be received in time. Under these circumstances, the assessee filed the appeals beyond the prescribed time limit. Therefore, the Ld. AR prayed for condonation of the delay. After hearing the Ld. AR and on perusal of the Affidavits filed by the assessee, we are of the view that there is a sufficient and reasonable cause for not filing the appeals before the Tribunal within the prescribed time limit and hence we hereby condone the delay of 31 days in the instant appeals and proceed to adjudicate the appeals on merits. 3. The assessee has raised identical grounds in all the appeals. Therefore, we take ITA No. 83/Viz/2022 as lead appeal and grounds raised therein are extracted herein below for reference: "1. The Ld. CIT(A) is erred in facts and law while passing the order. 2. The Ld. CIT(A) ought to have considered the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the circumstances of the case, the Assessing Officer is not justified in making the addition relying on the Annexure-A/YHPL/24 which contained soft copy of the transactions noted in an excel file by name "realpro.xisx" which does not contain corroborative material. 14. On the facts and in the circumstances of the case, Assessment is not valid in the eyes of law as certificate envisages U/s. 65B of the Evidence Act was not obtained by the Assessing Officer before relying on the transactions noted down in the excel file by name "realpro.xisx" for making the assessment. 15. On the facts and in the circumstances of the case, the Assessing Officer erred in making the addition basing on the annexure-A/YHPL/24 by the name "realpro.xisx" without bringing the corroborative evidence that the alleged amount of consideration received over and above the document value has been passed from the buyer to the assessee company. 16. On the facts and in the circumstances of the case, the Annexure A/YHPL/1 to 23 contains the loose papers/dumb document which does not convey any meaning and the Assessing Officer relying on these document for making the assessment is not justified. 17. On the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e total income as per the table below: Asst. Year Income Admitted (Rs.) 2012-13 2,20,00,000 2013-14 3,52,45,271 2014-15 6,99,87,741 2015-16 7,85,16,886 2016-17 6,38,24,401 2018-19 49,37,890 Total 27,45,12,189 Aggrieved by the order of the Ld. AO, the assessee filed an appeal before the Ld. CIT (A). 5. During the first appellate proceedings, the Ld. CIT (A) dismissed the appeals in limine for the AYs under consideration as none attended the first appellate proceedings. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. The assessee has raised the grounds of appeal as mentioned in para 2 of this order. 6. The main crux of the issue is with respect to the additions made by the Ld. AO to the extent of Rs. 27,45,12,189/- as income for various AYs ie., 2012-13, 2013-14, 2014-15, 2015-16, 2016-17 and 2018-19. The Learned Authorized Representative [Ld. AR] argued that the assessee has not disclosed the gross receipts to the extent of Rs. 44,77,69,667/-. The Ld. AR further submitted that the Managing Director of the company has admitted undisclosed income of Rs. 40 Crs in respect of all group concerns in the statement recorded U/s. 132(4) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cord and the orders of the authorities below. The admitted facts are that the assessee has failed to disclose the full turnover of Rs. 110,17,21,680/- but has disclosed only Rs. 72,51,69,083/-. However, it is noticed that the turnover not admitted as mentioned in page 9 of the paper book amounts to Rs. 52,12,93,979/- as per the sworn-in statement of the MD of the assessee-company dated 26/10/2017. We also find from page 8 of the paper book, the assessee has also given details project wise, assessment year wise unaccounted turnover in the books of accounts. We also find from page 11 of the paper book the assessee has declared the net profit and turnover as per the audited books of accounts while filing the return of income for the respective AY, which is extracted below: Asst. Year Turnover (Rs.) Net Profit (Rs.) N.P % 2012-13 9,49,58,318 1,62,34,346 17.10% 2013-14 9,24,21,574 84,70,899 9.17% 2014-15 30,21,48,711 2,17,59,882 7.20% 2015-16 11,13,70,080 32,31,052 2.90% 2016-17 12,39,13,400 47,30,017 3.82% 2017-18 65,00,4000 26,60,302 4.09% 2018-19 8,70,07,900 42,22,440 4.85% 8. The average net profit on the declared profit on the accounted turnover for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Services reported in [2007] 165 Taxman 638 (SC) the Hon'ble Supreme Court has observed as follows in Para 29: ".........Under the income tax Act the tax is on the income and not on gross receipts. It is also important to bear in mind that U/s. 4 the levy is on "total income" of the assessee computed in accordance with and subject to the provisions of the Income Tax Act. What is to chargeable to tax under the Income Tax Act is the profit and gains of a year. What is chargeable to tax under the Income Tax Act is not gross receipts but income....." Respectfully following the ratio laid in the above decisions, we are of the opinion that the entire unaccounted turnover cannot be brought to tax or the turnover admitted at the time of search operations cannot be brought to tax and as such there can only be a reasonable estimation of net profit on the unaccounted turnover. In the instant case, since the assessee has declared an average net profit of 8.18% for the AYs 2012-13 to 2018-19, we are of the considered view that the same net profit percentage shall be adopted on the unaccounted turnover of the assessee for the various assessment years. We are therefore inclined to set-aside ..... X X X X Extracts X X X X X X X X Extracts X X X X
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