DCIT Vs Nishant Construction Pvt. Ltd. (ITAT Ahmedabad)
Income Tax Appellate Tribunal (ITAT), Ahmedabad bench, in the case of Deputy Commissioner of Income Tax (DCIT) versus Nishant Construction Pvt. Ltd., has upheld the decision of the Commissioner of Income Tax (Appeals) [CIT(A)] to delete an addition of Rs. 32,13,77,692/-. The addition was made by the Assessing Officer (AO) on account of alleged “on money” received by the assessee company from the sale of properties in its “Ratnakar III” and “Ratnakar IV” schemes during the assessment years 2013-14 and 2014-15.
The appeals before the ITAT concerned the assessment years 2013-14 and 2014-15. As the core issue and facts were similar for both years, the ITAT dealt with ITA No. 2442/Ahd/2017 for A.Y. 2013-14 as the lead case, noting that its findings would apply to ITA No. 2243/Ahd/2017 for A.Y. 2014-15.
The solitary ground of appeal raised by the revenue contested the CIT(A)’s action in deleting the substantial addition. The background of the case traces back to a survey operation conducted on the assessee, a company engaged in construction and development projects. During the survey, certain documents were impounded. Based on these documents and further inquiries, including collecting information on prevailing market rates, the AO concluded that the assessee had received unaccounted cash or “on money” in the sale of flats within the Ratnakar III and IV schemes located in Ahmedabad. Consequently, the AO made the impugned addition to the assessee’s income.
