DCIT , JHANSI vs. KKG REAL ESTATE P LTD, JHANSI

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ITA 469/AGR/2018Status: DisposedITAT Agra22 April 2025AY 2014-15Bench: HON’BLE SHRI SATBEER SINGH GODARA, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL (Accountant Member)3 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The CIT(A) observed that the AO's extrapolation of receipts for the entire year was not supported by material evidence. The CIT(A) also deleted the addition of bank credits, deeming it a double addition.

What were the facts?

Following a survey, the AO reopened the assessee's case and estimated entire year's receipts based on three months' data found during the survey, adding 10% profit. Additionally, bank credits were added to the total income.

What were the issues?

Whether the AO was justified in extrapolating income for the entire year based on limited survey data, and whether adding bank credits constituted a double addition.

Which sections of the Income-tax Act were involved?

Section 133A,Section 143(3),Section 147,Section 148

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, AGRA

Before: HON’BLE SHRI SATBEER SINGH GODARA, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

Pronounced: 22.04.2025

(िनधा�रणवष� / Assessment Year:2014-15) DCIT, Circle 2(3)(1), M/s KKG Real Estate (P) Ltd., बनाम/ Jhansi. 395, Shiv Pariwar Colony Vs. Outside Unnao Gate, Jhansi-284002 �थायीलेखासं./जीआइआरसं./PAN/GIR No. AADCK-6238-N (अपीलाथ�/Appellant) : (� थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Sukesh Kumar Jain – Ld. CIT-DR � थ�कीओरसे/Respondent by : None सुनवाईकीतारीख/Date of Hearing : 20-02-2025 घोषणाकीतारीख /Date of Pronouncement : 22.04.2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by revenue for Assessment Year (AY) 2014-15 arises out of an order passed by learned Commissioner of Income Tax (Appeals)-2, Agra [CIT(A)] on 31-03-2018 in the matter of an assessment framed by Ld. AO u/s 143(3) r.w.s. 147 on 29-12-2016. At the time of hearing, none appeared for assessee. Having heard pleadings of Ld. CIT- DR, our adjudication would be as under.

2.

From case records, it emerges that pursuant to survey u/s 133A on the assessee on 25-03-2015, the case was reopened and notice u/s 148 was issued on 11-02-2016. The assessee e-filed return of income on 26- 10-2015. On the basis of total receipts shown by the assessee between three months as found during survey, the receipts of entire financial years were estimated and profit thereon was computed at 10% which resulted into addition of Rs.2 Crores in the hands of the assessee. There were credits in bank account for Rs.2.66 Crores which were separately added to the income of the assessee and the assessment was framed at total income of Rs.4.71 Crores.

3.

The Ld. CIT(A), in para 6.3, observed that as per document found, the receipts were only Rs.5.51 Crores and 10% thereof i.e., Rs.55.14 Lacs alone was to be treated as business income of the assessee. The extrapolation as made by Ld. AO was rejected since no material was found in that regard. Consequently, separate addition of bank credit was deleted since the same would amount to double addition. Aggrieved, the revenue is in further appeal before us.

4.

It is quite clear that the impugned additions are made on the basis of documents found during survey. However, receipts only for three months have been found whereas receipts for entire year have merely been extrapolated without there being any other material on record to support the same. It is trite law that only the real income has to be brought to tax and the assessment cannot be made on mere presumptions. The consequential addition has also rightly been deleted since the same are part of business receipts only. Adding the same again would amount to doble addition which is impermissible. Therefore, we do not find any infirmity in the impugned order.

5.

The appeal stands dismissed. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963.

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