THE DCIT, CIRCLE-3, SURAT vs. M/S. SAI ENTERPRISE, SURAT

ITA 2372/AHD/2014Status: DisposedITAT Surat14 November 2018AY 2010-1116 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the "on-money" receipts are clearly linked to the sale of flats and thus constitute business receipts. Consequently, they should be taxed as business income. The Tribunal also found no infirmity in the CIT(A)'s decision to not reject the books of accounts and to delete the estimated net profit.

What were the facts?

During a survey, unaccounted "on-money" receipts of Rs. 1,50,10,225/- were detected, which the assessee admitted as undisclosed income. The Assessing Officer (AO) treated these as deemed income under Section 69, disallowing deductions. The Commissioner of Income Tax (Appeals) [CIT(A)] directed that these receipts be treated as business income.

What were the issues?

Whether "on-money" receipts from sale of flats should be treated as business income or deemed income, and whether the rejection of books of accounts and estimation of profit by the AO were justified.

Which sections of the Income-tax Act were involved?

Section 69,Section 133A,Section 145(3),Section 271(1)(c),Section 69A

AI-generated summary — verify with the full judgment below

Before: C .M. GARG & O. P. MEENA

For Appellant: Shri Dileep Kumar – Sr.DR
Hearing: 11.10.2018Pronounced: 14.11.2018

PER O. P. MEENA, AM

1.

This appeal filed by the Revenue directed against the order of learned Commissioner of Income tax (Appeals)-IV, Surat [in short CIT(A)] dated 15.05.2014 for the Assessment Year 2010-11. ITA No.2372/Ahd/2014/SRT for A.Y.2010-11(by Revenue) :

2.

Ground No. i to iii states that the CIT (A) is not justified in not sustaining the rejectio

The order continues below.

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