Addition should be of Net profit/ income & not of gross profit

Poonam Developers Vs ACIT (ITAT Surat) The Assessing Officer further mentioned in para no. 5.1 that there is no dispute with regard to the fact of receipt of ‘on-money’ from sale of units. This clearly shows that amount of Rs.2,57,76,000/- is business receipts, and since these are business receipts therefore these receipts are taxable as per the profit declared by the assessee in audited books of accounts. These facts have been admitted by one of the partner of the assessee firm, Mr. Rajesh Ahir, who has categorically admitted and accepted in his statement during the course of survey proce...