ITAT Allows Deduction for Hidden Expenditure as Entire On-Money Cannot Be Taxed

Prime Developers Vs DCIT (ITAT Mumbai) The appeals before the ITAT Mumbai arose from cross appeals filed by both the assessee and the Revenue for Assessment Years (AYs) 2004-05 to 2007-08 concerning the taxation of profits from the “Prime Mall” project. The principal dispute related to the determination of taxable profits, alleged receipt of unaccounted “on-money” from sale of commercial units, the accounting method adopted by the assessee, additions relating to car parking sales, unexplained cash credits under Section 68, and other consequential issues. The assessee, a...