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 where tax officials found d...