ASSISTANT COMMISSIONER OF INCOME TAX,CENTRAL CIRCLE-2(2), HYDERABAD vs. KRISHNA REDDY GUJJULA, NALGONDA

आदेश/ORDER Per Bench: These Appeals filed by the Revenue and Cross objections filed by different assessee’s are directed against separate, but identical orders of the learned CIT (A) – 12 Hyderabad, all dated 31/05/2023 and pertain to A.Ys. 2016-17, 2017-18, 2018-19, 2019-20, 2020-21 and 2021-22 respectively. Since facts are identical and the issue is common, for the sake of convenience, these appeals and cross objections are being heard and disposed off, by this common consolidated order.

& 382/Hyd/2023 & C. Os 7 & 8/Hyd/2023

2. Ld.CIT(A) erred in Law while comparing the estimation in the hands of the Spectra Group has failed to distinguish the fact that it involved in sale of plot, not in aggregation.

3. Ld.CIT(A) erred in Law failing to verify the outward movement of cash portion of transactions to the different parties from whom loan was aggregated for which assessee has not filed any confirmation from the said parties evidencing the receipt of cash.

4. Ld.CIT(A) failed to distinguish the fact that while in the seized material found in the Spectra Group there is mention of Page 3 of 37

ITA 381 of 2023 and others Bhoomika Agro Farms outward movement of cash to the land aggregators which is not indicative in the case of the assessee. 5. Ld.CIT(A) erred in Law that the estimation in the hand of the Spectra Group cannot be extended to the assessee, who is a land aggregator and could not furnish the confirmation from 1and sellers 6. The appellant craves leave to amend or alter any ground or add any other grounds which may be necessary.”

ITA 381 of 2023 and others Bhoomika Agro Farms Nagarkurnool Distt. for an amount of Rs.170,60,00,000/-. Further, the seized material also contains a cash receipt acknowledged by Shri P. Shashikant Reddy representative of Bhoomika Agro Farms (P) Ltd. During the course of search at the office premises of Spectra India Eco Projects (P) Ltd, a Scan Disk Pen Drive of 8 GB was found and seized vide Annexure A/SIEPL/OFF/PenD/01, which contains day sheets in the form of excel sheets which reveals cash receipts and cash payments made by Spectra India Eco Projects (P) Ltd, related to its business. On verification of the day sheet, it was found that certain cash payments aggregating to Rs.60,18,16m000/- were paid to M.s Bhoomika Agro Farms (P) Ltd for the period financial year 2018- 19 to 2020-21. It was further noticed that the appellant has received an amount of Rs.60,18,16,000/- by way of cash and Rs.44,30,00,000/- through cheques/RTGS. During the post search investigation, Shri P. Shashikant Reddy was summoned and a statement u/s 131 of the I.T. Act, 1961 was recorded on 23.07.2021 and confronted with the seized documents. In response to a specific question, he has confirmed the agreement with Spectra India Eco Projects (P) Ltd, to sell 300 acres of agricultural land and also confirmed sale consideration of Rs.170,60,00,000/- which will be paid in 20 installments commencing from August, 2019 to February, 2021. He, further, stated that the cash payment referred to in day book seized from the office of Spectra India Eco Projects (P) Ltd, is related to cash payments made to the appellant company for the purpose of making payment to land owners for purchase of land and also related developmental work to be carried out in the land. He,

ITA 381 of 2023 and others Bhoomika Agro Farms further, agreed that his company works as a mediator/aggregator to pool the land from various farmers in the locality and to sell directly to M/s. Spectra India Eco Projects (P) Ltd and for this purpose, the company got commission/income and the same has been offered to tax in the respective A.Ys. He further stated that on cash payment received from Spectra India Eco Projects (P) Ltd,, he has agreed to disclose an additional income @ 4% on the total amount shown in the name of M/s Bhoomika Agro Farms (P) Ltd.

ITA 381 of 2023 and others Bhoomika Agro Farms money from Spectra India Eco Projects (P) Ltd and pass on to landowners. Further, the appellant works as a supervisor for the projects developed by Spectra India Eco Projects (P) Ltd, and cash payments received from Spectra India Eco Projects (P) Ltd, pertains to amount payable to landowner for purchase of land or otherwise for development expenses carried out in the site.

ITA 381 of 2023 and others Bhoomika Agro Farms receipts as commission and thus cannot be accepted. The relevant findings of the Assessing Officer are as under: “10. Conclusion of the Assessing Officer The reply of the assessee is not accepted. It is seen that during the course of search and seizure proceedings conducted at the office premises of M/s Spectra Group at 3-11-456, near Kamineni Hospital, Mansooradad, L B Nagar, Ranga Reddy Distt, a SANDISK Pern Drive of 8GB was found and seized vide annexure A/SIEPL/OFF/PenD/01 and it contains Day Sheets in the form of excel sheets. The Day Sheets contains the cash receipts and cash payments made by the spectra group related to its business. On verification of the same it was found that certain cash payments aggregating to Rs. 60,18, l6,000 was paid to M/s Bhoomika Agro Farms Private Limited for the period F.Y 2018-19 to 2020-21. 10.2 The assessee stated that they operate as a mediator for the land pooling and procure land from the farmers and enter into an agreement with the farmers for the land parcels identified for the development. At the beginning of the project, the land parcel is identified where Spectra Group is proposing to undertake development of land into plots. Then, they identify the land lords owning that land parcel and commence negotiation process with the land lords. The assessee had also stated that in their case, they have mediated the acquisition of land parcels by Spectra and the registration was done in the name of Spectra Group directly from the land lords. 10.3 ln this regard it is seen that the seized material i.e. day sheets show that the assessee has received an amount of Rs.44,30,00,000 through Cheque/RTGS and also received cash receipts of Rs.60,18,l6,000/- from M/s. Spectra Group. Hence, the onus is on the assessee to prove the nature and purpose of receiving those receipts with proper documentary evidence. It is seen that if the assessee is only acting as a mediator the amounts should not have received by the assessee through bank. 10 4 1HoweveI, the assesee had not submitted any proof of payment to landlords and also proof for incurring development expenses for Spectra Group. In absence of the evidence the contention of the assesee that it is a mediator for Spectra Group cannot be accepted. In the light of the above conclusion, it is seen that the assesee is engaged in the business of trading of land and not a Page 8 of 37

ITA 381 of 2023 and others Bhoomika Agro Farms mediator/land aggregator. Further, these cash receipts are not accounted in the books of account of the assessee. As no evidence was submitted for payments to land lords from the receipts of Spectra Group, the receipts of Rs.38,33,00,000/- for the A.Y. 2020-2l are treated as undisclosed receipts and added to the income of the assessee Addition: Rs. 38,33,00,000/- 10.5 The assessee in his reply staled that a commission of Rs.1,53,32,000/ was received for mediation for lands which is nothing but camouflaging of total receipts as commission and hence this argument of the assessee cannot be accepted. Penalty u/s. 270A are initiated for mis-reporting of income.”

ITA 381 of 2023 and others Bhoomika Agro Farms appellant was already having land in their possession. The remaining lands were identified and procured on behalf of Spectra Group. Therefore, the amount received from Spectra Group is either towards the purchase of land from the farmers or amount incurred towards various development work carried out in the site. Further, this fact has been reiterated by the Director of the appellant company Shri P Sashikant Reddy at the time of recording statement u/s 132 of the I.T. Act, 1961 during post search investigation and also admitted 4% income on said receipts. Therefore, the assessee submitted that the Assessing Officer has erred in making an addition towards total amount received from Spectra Group as undisclosed income of the assessee.

ITA 381 of 2023 and others Bhoomika Agro Farms appellant through the funds of Spectra Group was ultimately transferred back to Spectra Group. The learned CIT (A) further observed that as per the agreement dated 14/08/2019 which was seized during the course of search operation, the appellant was to procure about 300 acres land at various places from landowners and in turn transferred to M/s Spectra Group. As per the recitals of the agreement, the land does not belong to the appellant and the appellant is only a custodian with mutual understanding. The land was not registered in the name of the appellant, and it was to transfer to Spectra Group on the funds provided by them. Therefore, taking note of the fact that the appellant works as a Mediator/Aggregator of land for Spectra Group and also taking note of fact that M/s. Spectra Group also confirmed payment to appellant company towards purchase of land from farmers opined that, since the appellant is just rendering services to Spectra Group, the amount received from Spectra Group cannot be taxed on the whole as its income as has been done by the Assessing Officer. The ultimate beneficiary is M/s Spectra Group and in the case of Spectra Group, the Assessing Officer has assessed the profit at 15% of its turnover. Therefore, the appellant cannot make more money than the ultimate beneficiary on whose behest the appellant was appointed. Therefore, taking note of relevant facts, directed the Assessing Officer to restrict the addition made towards money received from Spectra Group to the extent of 10% of unaccounted cash receipts including the income admitted by the appellant. The relevant findings of the learned CIT (A) are as under: “This agreement has been dated 14.08.2019 and states about acquisition of 300 acres of land which did not belong to the Page 11 of 37

ITA 381 of 2023 and others Bhoomika Agro Farms appellant and is a custodian on mutual understanding. The land has not been registered in the name of the appellant and it was to transfer it to SIG on funds provided by them. It is noted that till that date of search proceedings, only 70 acres has been transferred. The above agreement basically mandates and also obligates the appellant to transfer the lands so acquired to the extent of 300 acres. It can be seen from the above agreement that the lends under consideration were held by original land owners only and the appellant is being mentioned as custodian of the properties by virtue of mutual understanding, sale agreements with respective land owners. Thus, the appellant acts as a medium between the land owners and SIG. These lands were registered in favor of the SIG group subsequently. This agreement, thus, strengthens the contention of the Appellant that it is only acting as an aggregator to SIG. It is also a fact that the appellant is into business activity of providing services as a land pooler/aggregator and not an investor or land owner. The AO concluded abruptly in holding that the whole receipt by Spectra belongs as income of the appellant and the AO stated that the appellant bas not given any proof of payment further with regard to the funds received from Spectra. The whole basis of the receipt of the appellant is the recording of day sheet made by the SIG Group which was seized during the course of search. The appellant's premise was neither searched nor surveyed u/s. 133A and there would be a likely chance of getting further documents in respect of the said activity. The statement of the recipient parties including the appellant were recorded only u/s. 131 and the said statement has not been found to be false by the A0. It is seen that the order in the case of SIG Group namely M/s Spectra India Eco Projects Private Ltd, M/s Spectra India Mega Projects Private Limited and M/s Spectra India Housing Private Limited have not been passed for the purpose of assessment of income. On the basis of expenditure or the books of accounts but on account of total receipts which included the accounted cheque and unaccounted cash. The AO realized the futility of considering the picture of the day sheets found in toto as it would distort the determination of income of the payer i.e. the SIG Group. The AO in the case of assessing the entities of SIG group had the benefit of the seized material which was incriminating and unaccounted. The AO considered the same as true within the meaning of section 132(4) and section 292C on presuming that the day sheet found is true and has thus assessed the income of the entities of SIG group on the basis of the said day sheets and concluding that the estimation of income would be the best proposition to determine the taxable income of the entities of the SIG group. There was no consequent search or survey conducted in the case of the appellant and other equivalent mediators to arrive at certain incriminating documents or material. The Investigation effectively came to a Page 12 of 37

ITA 381 of 2023 and others Bhoomika Agro Farms halt and thus whatever which was found u/s. 132(4) and u/s. 292C, the payer got the benefit of the seized document in establishing its true profit in the holistic picture and has been fairly assessed at net profit of 15% of determined turnover, whereas the appellant, a mediator has been saddled with the whole receipt as income. As already stated and established that the appellant is à mere mediator/ land pooler, considering the series of transaction and the funds flow which have been reproduced in the charts above. The appellant can only be designated as a land pooling service provider being a business activity which essentially rendered the service. The lands so acquired are not stock in trade of the appellant in intent as the funding is done by the IG and also the agreement was to transfer it to SIG. The appellant is only holding things on behalf of the entities of SIG group to be ultimately transferred to them. In this scenario as appellant is just rendering service and cannot be taxed on the whole quantum as it income as has been done by the AO. The ultimate beneficiary i.e., the SIG group has been assessed at 15% of its turnover as income. Obviously the appellant cannot make more money than the ultimate beneficiary on whose behest the appellant was appointed. In the present case the AO has taxed the mediator at more taxable income than the ultimate beneficiary itself which is grossly unfair and incorrect. The AO has also not disputed that the appellant is not an aggregators in spite of the statements recorded u/s. 132 of SIG group and the appellant itself u/s. 13I of the Income Tax Act and the business flow brought out above. The AO has just in a single line brushed aside the factual contention and taxed the appellant at 100% of receipts. In view of the totality of the circumstances and the assessment orders of entities of SIG, it would be fair to tax the appellant at 10% of the unaccounted receipts as recorded in the day sheets of the document seized in the search of SIG group. The other regular income for the accounted transactions has to be accepted as it is as no adverse inference has been recorded by the AO in this regard. In view of the above discussion, the addition made in this regard for AYs 2020-21 and 2023-22 is to be restricted to 10% of the unaccounted receipts considering that the most of these kind of entities under consideration on similar issue, have reported an average of 6-7%o net profit over the years. It is mentioned in the assessment orders that the appellant had already admitted 4% of the unaccounted receipts. Howevcr, the AO is directed to verify such admission in the income returned and restrict the addition in this regard to 10% of the unaccounted cash receipts including the admission by the appellant, if any. The ground no.

ITA 381 of 2023 and others Bhoomika Agro Farms

2 of both the appeals is partly allowed accordingly subject to the above direction.”

ITA 381 of 2023 and others Bhoomika Agro Farms

ITA 381 of 2023 and others Bhoomika Agro Farms received from Spectra Group cannot be entirely treated as income of the assessee.

ITA 381 of 2023 and others Bhoomika Agro Farms Group, the appellant company agreed to sell agricultural land admeasuring 300 acres in various survey Nos situated in Cherukuru and Peddapur villages, Weldanta Mandal, Nagarkurnool Distt. for the amount of Rs.170,60,00,000/-. A statement was recorded from Shri P Shashikant Reddy, of Bhoomika Agro Farms (P) Ltd on 29.07.2021 and confronted copy of sale agreement dated 14.8.2019 and cash payments received from Spectra Group as per excel sheets found in Pen Drive. In response to a specific question, he has confirmed the sale agreement between appellant company and M/s. Spectra Group for the sale of 300 acres of land and also confirmed sale consideration referred to therein. He has further confirmed the amount received from Spectra Group as per the excel sheet found in Pen Drive including amount received through Cheques/RTGS and amount received by cash. However, he further stated that the appellant company works as Mediator/Aggregator of land for Spectra Group and whatever amount received from Spectra Group is either for payment to landowners towards purchase of land or expenditure incurred for development works at site.

ITA 381 of 2023 and others Bhoomika Agro Farms of amount received from Spectra Group to different parties from whom the land was aggregated. Therefore, he opined that in absence of any evidence, it is difficult to accept the argument of the assessee that it was acting as a Mediator/Aggregator for M/s. Spectra Group and the amount received from them is towards payment to landowners/farmers for purchase of land and also for various expenditure incurred at site.

ITA 381 of 2023 and others Bhoomika Agro Farms owners either by way of MOU, sale agreement or agreement cum GPA. Since the agreement itself provides clarity on the ownership of the land, that appellant was not owner of the entire land transferred to Spectra Group, in our considered view the arguments of the assessee that it acted as Mediator/Aggregator for pooling land to Spectra Group appears to be reasonable and bonafide. Therefore, to this extent, we fully agreed with the findings of facts recorded by the learned CIT (A).

ITA 381 of 2023 and others Bhoomika Agro Farms and finally transfers land to Spectra Group directly from the farmers to Spectra Group or through AGPA in the name of the appellant and transfer to Spectra Group, and in some cases the land is registered in the name of the appellant and subsequently transferred to Spectra Group. In this regard, it is noted that, the learned CIT (A) has recorded a categorical finding in light of certain sample sale deeds between the appellant and Spectra Groups and observed that in many cases, the land has been directly registered in the name of Spectra Group by the land owners and in few cases land has been registered through AGPA by appellant company to Spectra Group and in very few cases the land has been directly registered by the appellant company to Spectra Group. The learned CIT (A) further observed that the consideration as per sale deed between landowners and Spectra Group and the appellant and Spectra Group is almost similar with minor difference. Therefore, in our view, going by the modes operandi of Spectra Group and role of appellant, there is no doubt of whatsoever in our mind to the argument of the learned Counsel for the assessee that, the appellant only works as a mediator/aggregator for land and whatever amount received from Spectra Group including unaccounted cash receipts is on behalf of Spectra Group to be paid to land owners for purchase of land. This fact is further strengthened by the statement recorded from Shri P Shashikant Reddy representative of Bhoomika Agro Farms (P) Ltd, where he has categorically stated that the appellant works as a Mediator/Aggregator for land pooling to M/s. Spectra Group and further, the company also works as a supervisor for developmental work in the proposed sites. Therefore, we are of the Page 20 of 37

ITA 381 of 2023 and others Bhoomika Agro Farms considered view that the findings of the facts recorded by the learned CIT (A) in light of sale of agreement dated 14.08.2019, statement recorded from appellant and their representatives and also various evidences brought on record by the appellant that the appellant is a mediator/aggregator for land pooling to M/s Spectra Group and whatever the amount received from Spectra Group is finally paid or transferred to land owners is reasonable and acceptable.

ITA 381 of 2023 and others Bhoomika Agro Farms the business carried on by the assessee and industry standard, no person or developer can make such a huge amount of profit from this line of business within a short period of time. We further note that the learned Counsel for the assessee has produced copies of assessment order passed in the case of Spectra Group where, the Assessing Officer after considering relevant facts has not made any additions in the hands of Spectra Group towards amount paid in cash to appellant and various other companies. Further, the Assessing Officer of the Spectra Group has estimated profit at 15% of total turnover/gross receipts reported by the company for various A.Ys. Therefore, going by the above facts, we are of the considered view that when the ultimate beneficiary itself is not able to make more than 15% profit on its total business, it is difficult to accept the reasons given by the Assessing Officer that the appellant makes such a huge profit from purchase and sale of land within a short period. Therefore, we are of the considered view that the learned CIT (A), after considering relevant facts, has rightly estimated 10% income on total undisclosed cash receipts from Spectra Group as income of the assessee. Thus, we are inclined to uphold the findings of the learned CIT (A) and reject the grounds taken by the Revenue as well as the grounds of Cross Objections taken by the assessee.

ITA 381 of 2023 and others Bhoomika Agro Farms ITA 385, 386 and 387/Hyd/2023 – A.Ys 2019-20 to 2021-22 (Revenue) and C.O Nos.3,4 and 5/Hyd/2023 (Assessee) - Sunshine Estate Construction India LLP, Hyderabad 17. The Revenue raised the following grounds for the A.Y 2019-20:

1. The Ld. CIT(Appeals) erred both in law and on facts of the case in granting relief to the assessee.

2. Ld.CIT(A) erred in Law while comparing the estimation in the hands of the Spectra Group has failed to distinguish the fact that it involved in sale of plot, not in aggregation.

3. Ld.CIT(A) erred in Law failing to verify the outward movement of cash portion of transactions to the different parties from whom loan was aggregated for which assessee has not filed any confirmation from the said parties evidencing the receipt of cash.

4. Ld.CIT(A) failed to distinguish the fact that while in the seized material found in the Spectra Group there is mention of outward movement of cash to the land aggregators which is not indicative in the case of the assessee.

5. Ld.CIT(A) erred in Law that the estimation in the hand of the Spectra Group cannot be extended to the assessee, who is a land aggregator and could not furnish the confirmation from land sellers

6. The appellant craves leave to amend or alter any ground or add any other grounds which may be necessary.”

ITA 381 of 2023 and others Bhoomika Agro Farms Spectra Group, certain incriminating material was seized in the case of the assessee. Notice u/s 153C dated 06/01/2022 was issued to the assessee, in response to which the assessee company filed its return of income 22/08/2022 admitting a total income of Rs.64,44,530/-. In response to the statutory notices issued thereafter, the assessee furnished the relevant information called for and after verification of the information furnished by the assessee, the Assessing Officer completed the assessment.

ITA 381 of 2023 and others Bhoomika Agro Farms the registration was done in the name of Spectra Group directly from the land lords.

ITA 381 of 2023 and others Bhoomika Agro Farms

ITA 381 of 2023 and others Bhoomika Agro Farms to 392/Hyd/2023 & C.Os 9 to 13/Hyd/2023 – Krishi Housing (P) Ltd, Hyderabad for A.Y 2017-18 to 2021-22

ITA 381 of 2023 and others Bhoomika Agro Farms 127, 129, to 135 situated at Gunded Village, BalanagarMandal, Mahaboobnagar Distt. and land Admeasuring Ac.10-20 Gts situated at Nandaram village, BalanagarMandal, Mahboobnagar Distt. for a sale consideration of Rs.1,600 per Sq Yards. Further as per the seized material vide annexure A/GAK/RES/02, in the form of receipts acknowledged by Sri M.Ugandhar Reddy or representatives of M/s Krishi Housing Pvt Ltd, shows that M/s Krishi Housing Pvt Ltd has received an amount of Rs. 24,38,01,000/- by way of cash and Rs.7,40,00,000 through Cheque/RTGS. Summons u/s 131 of the Income tax Act,1961 were issued to Sri M.Ugandhar Reddy of M/s Krishi Housing Pvt Ltd by DDIT(Inv), Unit 1(4), Hyderabad, in response to which he appeared and a statement was recorded from him.

ITA 381 of 2023 and others Bhoomika Agro Farms plots. Then, they identify the land lords owning that land parcel and commence negotiation process with the land lords. The assessee had also stated that in their case, they have mediated the acquisition of land parcels by Spectra and the registration was done in the name of Spectra Group directly from the land lords. In this regard it is seen that the seized material i.e. agreement of sale, cash receipts and day sheets show that the assessee has received an amount of Rs. 7,40,00,000 through Cheque/RTGS and also received cash receipts of Rs. 28,76,91,000/- from M/s. Spectra Group. Hence, the onus is on the assessee to prove the nature and purpose of receiving those receipts with proper documentary evidence. It is seen that if the assessee is only acting as a mediator the amounts should not have received by the assessee through bank. However, the assessee had not submitted any proof of payment to land lords and also proof for incurring development expenses for Spectra Group. In absence of the evidence the contention of the assessee that it is a mediator for Spectra Group cannot be accepted. In the light of the above the Assessing Officer concluded that the assessee is engaged in the business of trading of land and not a mediator/land aggregator. Further, these cash receipts are not accounted in the books of accounts of the assessee. As no evidence was submitted for payments to land lords from the receipts of Spectra Group, the receipts of Rs5,68,50,000/- for the A.Y. 2017-18 are treated as undisclosed receipts and added to the income of the assessee.

ITA 381 of 2023 and others Bhoomika Agro Farms appeal filed by the assessee by directing the Assessing Officer to estimate 10% income on total undisclosed cash receipts from Spectra Group.

In the result, all the appeals in to 31. 392/Hyd/2023 filed by the Revenue and C.Os 9 to 13/Hyd/2023 filed by the assessee in respect of Krishi Housing (P) Ltd, Hyderabad for A.Y 2017-18 to 2021-22 are dismissed.

ITA 381 of 2023 and others Bhoomika Agro Farms

ITA 381 of 2023 and others Bhoomika Agro Farms identify the land lords owning that land parcel and commence negotiation process with the land lords. The assessee had also stated that in their case, they have mediated the acquisition of land parcels by Spectra and the registration was done in the name of Spectra Group directly from the land lords. In this regard the Assessing Officer observed that that the seized material i.e. receipts show that the assessee has received an amount of Rs.5,67,86,000/- by way of cash and Rs.3,50,50,000/- by way of Cheque aggregating to Rs.9,18,36,000/- from M/s. Spectra Group. Hence, the onus was on the assessee to prove the nature and purpose of receiving those receipts with proper documentary evidence. The Assessing Officer further observed that if the assessee is only acting as a mediator, the amounts should not have received by the assessee through bank. However, the assessee had not submitted any proof of payment to land lords and also proof for incurring development expenses for Spectra Group. In absence of the evidence the contention of the assessee that it is a mediator for Spectra Group cannot be accepted. In the light of the above, the Assessing Officer concluded that the assessee is engaged in the business of trading of land and not a mediator/land aggregator. Further, these cash receipts are not accounted in the books of accounts of the assessee. As no evidence was submitted for payments to land lords from the receipts of Spectra Group, the receipts of Rs.9,18,36,000/- for the F.Y. 2020-21 are treated as undisclosed receipts and added to the income of the assessee.

ITA 381 of 2023 and others Bhoomika Agro Farms

ITA 381 of 2023 and others Bhoomika Agro Farms to 405/Hyd/2023 (Revenue) and C.O No.14 to 19/Hyd/2023 by SLNS Agro Developers (P) Ltd – A.Ys 2016-17 to 2021-22.

ITA 381 of 2023 and others Bhoomika Agro Farms 2014-15 to 2020-21. For the A.Y.2016-17, the receipts from Spectra Group amounted to Rs. 13,00,48,610/-. The assessee stated that they operate as a mediator for the land pooling and procure land from the farmers and enter into an agreement with the farmers for the land parcels identified for the development. At the beginning of the project, the land parcel is identified where Spectra Group is proposing to undertake development of land into plots. Then, they identify the land lords owning that land parcel and commence negotiation process with the land lords. The assessee had also stated that in their case, they have mediated the acquisition of land parcels by Spectra and the registration was done in the name of Spectra Group directly from the land lords. The Assessing Officer further observed that as per the evidence found and seized during the search the assessee has received an amount of Rs. 178.49 Crores by way of cash in the financial Year 2014-15 to 2020-21 from M/s. Spectra Group. Hence, the onus is on the assessee to prove the nature and purpose of receiving those receipts with proper documentary evidence. According to the Assessing Officer, that if the assessee is only acting as a mediator the amounts should not have received by the assessee through bank. However, the assessee had not submitted any proof of payment to land lords and also proof for incurring development expenses for Spectra Group. In absence of the evidence the contention of the assessee that it is a mediator for Spectra Group cannot be accepted. In the light of the above the Assessing Officer concluded that the assessee is engaged in the business of trading of land and not a mediator/land aggregator. Further, these cash receipts are not accounted in the books of Page 35 of 37

ITA 381 of 2023 and others Bhoomika Agro Farms accounts of the assessee. As no evidence was submitted for payments to land lords from the receipts of Spectra Group, the receipts of Rs.Rs.13,00,48,610/- for the A.Y. 2016 17 are treated as undisclosed receipts and added to the income of the assessee.

ITA 381 of 2023 and others Bhoomika Agro Farms

In the result, all the six appeals filed by the Revenue 45. as well as the six cross objections raised by the assessee are dismissed.