ACIT Vs Bhoomika Agro Farms Pvt. Ltd. (ITAT Hyderabad)
The Hyderabad ITAT disposed of a batch of Revenue appeals and assessees’ cross objections arising from separate but identical orders of the CIT(A)-12, Hyderabad dated 31.05.2023 for Assessment Years 2016-17 to 2021-22. Since the facts and issues were common, the Tribunal passed a consolidated order covering Bhoomika Agro Farms Pvt. Ltd., Sunshine Estate Construction India LLP, Krishi Housing Pvt. Ltd., Krishna Reddy Gujjula, and SLNS Agro Developers Pvt. Ltd.
The cases originated from a search and seizure operation under Section 132 conducted in the Spectra Group on 23.03.2021. During the search, agreements of sale, cash receipts and a pen drive containing day sheets recording cash receipts and cash payments were seized. The seized material indicated that various entities had received amounts from Spectra Group through both cheque/RTGS and cash. Statements of representatives of the assessees were recorded under Sections 131 or 132, wherein they stated that they acted as mediators or land aggregators for Spectra Group by identifying, pooling and procuring land from farmers and landowners, facilitating its transfer to Spectra Group, and carrying out supervisory work relating to development. They also stated that the cash received from Spectra Group was utilised for payments to landowners and development-related expenditure, and in the case of Bhoomika Agro Farms Pvt. Ltd., additional income at 4% of the cash receipts had been offered.
