DEEPAK MOHANLAL PURUSWANI,RAJKOT vs. DCIT, CC-1, RAJKOT, RAJKOT

ITA 631/RJT/2024Status: DisposedITAT Rajkot13 March 2026AY 2022-23Bench: DR. ARJUN LAL SAINI (Accountant Member), DR. DINESH MOHAN SINHA (Judicial Member)14 pages
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What did the Tribunal hold?

The Tribunal held that the profit element embedded in 'on-money' receipts should be taxed, not the entire amount. For RK Industrial Zone 16, a profit rate of 25% was deemed appropriate, and for RK Industrial Park Phase 5, 53% was estimated. The Tribunal also held that income from on-money receipts should be taxed in the year the sale deed is executed, not when the money is received, and dismissed the revenue's appeals.

What were the facts?

Search and seizure operations were conducted on real estate developers in Rajkot. Data recovered from a third party's premises (Miracle files) allegedly showed unaccounted transactions by the assessee related to land purchase and sale of units in various projects. The assessee claims the data is unreliable and not recovered from their possession.

What were the issues?

Whether profit on 'on-money' receipts is taxable, and if so, at what rate and in which assessment year. Whether data seized from a third party can be used for addition against the assessee without corroboration.

Which sections of the Income-tax Act were involved?

Section 147,Section 143(3),Section 132,Section 133A,Section 131,Section 132(4A),Section 292C,Section 132(4),Section 144,Section 145(3),Section 4,Section 145(2)

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आयकर अपील"य अ"धकरण, राजकोट "यायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND DR. DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं/.ITA No.630 & 631/RJT/2024 िनधा"रण वष"/ Assessment Year: (2021-2022 & 2022-23) Hybrid Hearing बनाम Shree Deepak Mohanlal Puruswani The DCIT, CC-1 Rajkot Nr. Maa Krupa, 4- Saurashtra Kala Vs. Aaykar Bhawan “Amruta Estate”, Kendra Society, Opp. Nirmala Convent, MG Road, Rajkot 360001, Kalawad Road, Rajkot-360001 "थायीलेखासं/.जीआइआरसं/.PAN NO. : AJVPP5139P .. (अपीलाथ"/Appellant) (""यथ"/Respondent) आयकर अपील सं/.ITA No.665/RJT/2024 िनधा"रण वष"/ Assessment Year: (2022-23) बनाम The DCIT, CC-1 Rajkot Shree Deepak Mohanlal Puruswani Aaykar Bhawan“Amruta Estate”, 2nd Vs. Nr. Maa Krupa, 4- Saurashtra Kala Floor MG Road Kendra Society, Opp. Nirmala Rajkot 360001, Gujrat Convent, Kalawad Road, Rajkot-360001 "थायीलेखासं/.जीआइआरसं/.PAN NO. : AJVPP5139P .. (अपीलाथ"/Appellant) (""यथ"/Respondent)

िनधा"रतीक"ओरसे/Assessee by : Shri Mehul Ranpura, Ld. AR राज"वक"ओरसे/Revenue by : Shri Abhimanyu Singh Yadav, Ld. SR. DR

सुनवाईक"तारीख/ Date of Hearing : 16/01/2026 घोषणाक"तारीख/Date of Pronouncement

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