INCOME TAX ACT, 1961

Section 254

Appeal (Tribunal) - Rectification of Tribunal's order - Unexplained cash receipts being amounts received by assessee from a developer -

Revenue had preferred Miscellaneous Application seeking to recall the order passed by this Tribunal. AO made addition unexplained cash receipts being amounts received by assessee from a developer company. CIT(A) held that on applying the gross profit rate of 16% on the said unaccounted receipts, unaccounted profit of the assessee was determined as against the addition made by AO. ITAT had allowed the appeal of the assessee by way of cross- objection, wherein it challenged the order of CIT(A) confirming the addition to its total income. Thus, ITAT had not only dismissed the Revenue's appeal but also deleted the addition to the extent sustained by CIT(A). Developer had admitted on-money income, however, only part amount was offered to tax by assessee. Further, this addition was contested by Developer before ITAT which was still pending. Thus, issue had not reached finality.Held: Main grievance of revenue was that Developer company had not offered income in its hands and that Tribunal appeal was pending in their case while deciding appeal by this Tribunal in case of assessee. Tribunal while disposing of the appeal in the case of Runwal Developers (P) Ltd. v. Dy. CIT [ITA No. 5622/Mum/2017, dated 15-7-2020] had ultimately remanded the issue to AO for purpose of quantification of undisclosed income on the basis of incriminating materials/evidences and examine the availability of cash in the group as a whole. Revenue had preferred this Miscellaneous Application on which date order of Tribunal in the case of Runwal Developers (P) Ltd., had already been passed and plea of the revenue that, appeal in the case of Runwal Developers (P) Ltd., had not attained finality was found to be factually incorrect. Hence, plea of the revenue did not fall within the ambit of any mistake apparent from record.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16

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