Meenamani Ganga Builder LLP Vs ACIT (ITAT Pune)
ITAT Pune held that extrapolation cannot be made on account of receipt of on-money for sale of shops in respect of which no evidence was found during the course of search. Accordingly, appeal partly allowed.
Facts- The assessee is a firm engaged in business of real estate. During the course of assessment proceedings, the Assessing Officer noted that search action u/s 132 of the Act was conducted in the case of M/s. Meenamani Ganga Builder LLP as a part of search action in Goel Ganga Group on 10.01.2019. During the course of search action various incriminating documents in the form of loose papers were found and seized from the office premises of M/s. Meenamani Ganga Builders LLP. When these documents were correlated with entries found in other documents and registered deeds, it became evident that the assessee firm was involved in accepting on-money in cash for booking/selling of flats/shops.
Relying on various decisions, AO made addition of Rs.45,17,500/- to the total income of the assessee. Similarly, for assessment year 2019-20, he made addition of Rs.1,30,68,000/-. Further, AO made the addition of Rs.1,75,20,700/- as on-money received on account of sale of shops. Similarly, for assessment year 2018-19, AO made addition of such on-money at Rs.1,49,74,500/- and for assessment year 2019-20, he made addition of Rs.206,27,925/- on account of such on-money.
