Case Law Details
DCIT Vs Shreeji Enterprises (ITAT Ahmedabad)
ITAT Ahmedabad held that undisclosed income declared during the course of search is treated as gross income as genuineness of expenditure claimed against the same is not doubted by AO.
Facts- The assessee had constructed a commercial scheme consisting of shops in the name of ‘Trivia’ at Race Course, Baroda. During the course of survey, statement was recorded of one of the partners, Snehal Patel in which he declared approximately 11 crores as undisclosed income of the assessee firm M/s Shreeji Enterprises for A.Y. 2014-15.
AO concluded that the disclosure of net income of Rs. 11 crores was made during the course of search and thus represented the gross receipts of the assessee. The undisclosed income of Rs. 11 crores is net of incurring all the expenses.
CIT(A) allowed the appeal filed by the appellant. Being aggrieved, revenue has preferred the present appeal.
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