Sumatinath Builders Vs ACIT (ITAT Mumbai)
A survey u/s 133A was conducted on 20.11.2014 in the case of M/s Sumatinath Builders. Incriminating documents (a “Blue Colour Chairman Spiral Pad”) revealed cash/on-money receipts of ₹2.99 crore. Partner Shri Dinesh Jain admitted the same as additional income for F.Y. 2014-15. Return was filed on 30.03.2016 declaring total income of ₹3.11 crore. AO selected case for limited scrutiny (creditors, interest, sales mismatch, etc.).
AO noted that Assessee had declared ₹3 crore on-money in survey. Since details of persons from whom on-money was received were not provided, AO treated it as unexplained cash credit u/s 68 and added ₹3 crore (though already offered as income). AO also found difference between stamp duty value & declared consideration in sale of 1 flat + 3 shops in project “Shalibhadra Classic.” Assessee followed Project Completion Method and argued sales would be booked later. Eventually, Assessee offered ₹79.48 lakh as additional income vide letter dated 24.11.2017. AO treated this as deemed income u/s 43CA.
Appeal was dismissed by CIT(A) ex-parte on 12.09.2023 for alleged non-compliance.
Assessee argued that notices were wrongly sent to an incorrect e-mail ID ([email protected] instead of [email protected] given in Form 35). Phone number in Form 35 belonged to a retired partner; hence notices never reached Assessee. Ex-parte dismissal order led to recovery notice & Assessee filed ITAT appeal with 601 days delay, supported by affidavit.
