9911796707
TMI Blog2022 (5) TMI 1670X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of Delta Engineering Co [1990 (5) TMI 25 - ALLAHABAD HIGH COURT]
Net profit is taxable income. Hence, considering the facts and circumstances of the case, we direct the assessing officer to compute the net profit @ 8% of the gross receipts. X X X X Extracts X X X X X X X X Extracts X X X X ..... any ground(s) of appeal either before or during the course of hearing of the appeal." 4. The grounds of appeal raised by the assessee, in cross appeal, in ITA No.15/SRT/2021 are as follows: "1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income -Tax (Appeals) has erred in confirming Rs.51,55,200/- i.e. 20% of Rs.2,57,76,000/- as profit of assessee. 2. It is therefore prayed that the above addition/disallowance made by the assessing Officer may please be deleted. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 5. Succinct facts are that a survey under section 133A of the Income Tax Act was conducted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the notice. On perusal of the seized material on request, it is submitted that the actual receipts are only those seen in page 23-26 of Annexure BF-2 for the financial year relevant to AY 2017-18. It is further categorically stated that no sale deed has been registered during the year, only some rough sale agreement was entered with the parties, a list of which is annexed." 7. Without prejudice to the above, the assessee also submitted before the assessing officer that only profit element may be taxed. However, assessing officer rejected the contention of the assessee and made addition to the tune of Rs.2,57,76,000/- under section 68 of the Act. 8. On appeal, ld CIT(A), keeping in view the facts of the assessee's case, restricted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other materials brought on record. We note that assessing officer stated that assessee received 'on-money' from customers on sale of flats (Villa), the details of the same are as follows: Villa Type No. of Villas Amount of On-money receipt A76 1 44,00,000/- B1 4 46,50,000/- B2 9 1,16,95,000/- B4 9 50,31,000/- Total 2,57,76,000/- The Assessing Officer further mentioned in para no. 5.1 that there is no dispute with regard to the fact of receipt of 'on-money' from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Dhakeshwari Cotton Mills reported in 26 ITR page 775. Moreover, he has determined the gross profit when for the purpose of computation of total income it is not the gross profit but net Income which has to be added to the total income. The assessees own records are one of the factors which has to be considered and kept in mind while estimating the profit as has been held in the case of Delta Engineering Co. reported in 186 ITR 383. Similar view have been taken in the case of Action Electricals (Delhi) reported in 258 ITR 188. The AI1ahabad High Court in the case of Shyam Bidi Works (Appeal No. 64 of 2005 vide judgement dated 18th July 2014) has approved the action of the authorities wherein the rate of profit accepted in earlier years was a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
