ITAT Ahmedabad Caps Realty On-Money Profit at 8%, Cites Precedent

Greenfield Reality P. Ltd. Vs ACIT (ITAT Ahmedabad)

Income Tax Appellate Tribunal (ITAT) of Ahmedabad has ruled that only the profit element embedded in unaccounted “on-money” receipts can be taxed, and pegged the rate at 8% in a case involving a real estate developer. In the matter of Greenfield Reality P. Ltd. vs. ACIT, the tribunal set aside a higher profit estimation by tax authorities and quashed separate additions made for unexplained expenditure and cash credits, providing significant relief to the company.

The case emerged from a search operation w

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