9911796707
TMI Blog2025 (1) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... for the respondent. 2. These appeals were admitted by order dated 21st February, 2011 for consideration of the following substantial question of law :- "Whether the Appellate Tribunal has correctly appreciated the facts on record so as to restrict the addition to Rs.10,00,000/- as against addition of Rs.2,06,75,974/- worked out by the Assessing Officer in respect of undisclosed income from Shipgram Scheme ?" 3. The brief case of the facts are that the respondent-assessee is engaged in the business of development and construction in real estate. The search was carried out on 12.07.2001 and notice calling for return for the block period was served on 07.01.2002 which was filed on 01.05.2003 showing undisclosed income of Rs. 10,00,000/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y shown Rs. 80,00,000/- in his books of account which was reduced out of the sum of Rs. 9,53,83,887/-. Thus, the profit was worked out by the CIT(A) at Rs. 58,01,124/- The CIT(A) accordingly allocated the sum between the assessee and M/s Shivganga Builders at the rate of 30% and 70% and accordingly the CIT(A) sustained the addition to the extent of 30% le. Rs. 17,40,337/- The CIT(A) has given clear-cut finding that at the time of assessment the assessee had filed the affidavits of farmers in which the farmers have duly confirmed the selling price of the land and the rates given in the seized document i.e. Annexure A/12. The AO, in our opinion, was bound to accept the cost of the land as shown in the seized document. In our opinion, the AO w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yd. which in our opinion should have been valued at the rate of Rs.210 per sq. yd. The value of the unsold plot of land thus will work out to Rs.79,80,000/-. Thus, the value of the closing stock will get reduced by Rs. 45,40,000/- which reduce the profit to Rs. 12,61,124/-, 30% thereof will come to Rs. 3,78,517/-. Thus, the addition of Rs. 17,40,337/- will stand reduced to Rs. 3,78,517/-. The assessee since has returned the undisclosed income at Rs. 10,00,000/- Therefore, the addition made cannot be below Rs. 10,00,000/- and accordingly the AO is directed to reduce the undisclosed income to Rs. 10,00,000/- and addition to that extent stands sustained from the Shilpgram Scheme in the case of the assessee. Thus, the ground of the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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