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TMI Blog2015 (1) TMI 1498X X X X Extracts X X X X X X X X Extracts X X X X ..... as justified in rejecting books of accounts. Estimation of on money done by AO was not found correct by CIT(A) as figures of on money received in one flat from an NRI buyer cannot be the basis for holding that same on money was received by assessee for all flats and also from the partner to whom 11 flats were given. Net profit rate of 16% applied by Assessing Officer was not found justified by CIT(A). Drawing the strength from various judicial pronouncements of ITAT Bench, CIT(A) observed that assessee has shown net profit of Rs. 2,00,00,000/- and for this net profit @ 15%, corresponding on money comes to Rs. 13,33,00,000/-.as against on money estimated by AO at Rs. 15,56,12,400/- (including flats given to partner with on-money). He took ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances, the estimation done by the Assessing Officer for other flats based on the evidence and also considering the assessee's own admission of on-money during the course of search in the same project and the market trend in real estate ought to have been upheld by the Ld CIT(A). iii) On the facts and circumstance of the case and in law, the Ld CIT(A) erred in law and in facts in restricting the N.P estimation at 15 % from 16% estimated by the Assessing Office relying upon the decision of Hon'ble ITAT in other cases, where the facts are quite different from the facts of the instant case and also ignored that the Assessing Officer had made the estimation considering the growth of property market ,the market trend in real estate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve Shri Subhash Bains submitted that on money received in one plot from NRI buyer was sound basis for calculating on money received by assessee for all flats. In such situation, CIT(A) was not justified in restricting net profit estimation @ 15% from 16% estimated by Assessing Officer. Accordingly, order of CIT(A) be set aside and that of Assessing Officer on the issue be restored. On other hand, learned Authorized Representative Shri Rajesh Shah relied on the decision of CIT(A). 2.3 After going through rival submissions and material on record, it is found undisputed that books of accounts maintained by assessee were not proper and not reliable as complete receipts were not shown. Assessee himself admitted receipt of on money and disclosed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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