The ACIT, Circle-5, Surat V. M/s. Vraj Developers, Surat

ITA 2167/AHD/2012

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8938 (ITAT-AHMEDABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 21-03-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 01-10-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained expenditure; Income from undisclosed sources

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER 1. ./ I.T.A. NO.2167/AHD/2012 2. ./ I.T.A. NO.2168/AHD/2012 ( / ASSESSMENT YEAR : 2008-09 ) 1.THE ACIT CIRCLE-5 SURAT 2. THE ACIT CIRCLE-5 SURAT / VS. 1. M/S.VRAJ DEVELOPERS BLOCK NO.29 NR.PARAMUSKH GURUKUL SIMADA GAM RAL: CHORYASI-395 010 PAN: AAFFV 5875M 2. M/S. VRAJ CORPORATION -ADDRESS SAME ABOVE- PAN: AAFFV 4962R ( #$ / APPELLANT ) .. ( %#$ / RESPONDENTS ) #$& / APPELLANT BY : SHRI JAMES KURIAN, SR.DR %#$ '& / RESPONDENTS BY : -NONE- () '* / DATE OF HEARING 21/03/2017 +,-. '* / DATE OF PRONOUNCEMENT 30/ 03 /2017 / O R D E R PER PRADIP KUMAR KEDIA, AM: BOTH THE CAPTIONED APPEALS BY TWO ASSESSEES ARE DI RECTED AGAINST THE SEPARATE ORDERS OF THE COMMISSIONER OF INCOME T AX(APPEALS)-I, SURAT ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 2 - [CIT(A) IN SHORT] IDENTICALLY DATED 13/07/2012 FOR THE ASSESSMENT YEAR (AY) 2008-09. SINCE THE COMMON ISSUE IS INVOLV ED IN BOTH THE APPEALS, THESE WERE HEARD TOGETHER AND ARE BEING DI SPOSED OF BY THE CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. IT IS SEEN FROM THE RECORD THAT DESPITE ISSUAN CE OF NOTICE TO THE ASSESSEE ON SEVERAL OCCASIONS IN THE PAST, NONE-ATT ENDED ON BEHALF OF THE ASSESSEE. THE MATTER WAS ONCE AGAIN FIXED ON 21/03 /2017 TO ENABLE THE ASSESSEE TO DEFEND ITS CASE. HOWEVER, NONE ATTENDE D YET AGAIN. THEREFORE, IT MANIFEST THAT THE ASSESSEE DOES NOT S EEK TO DEFEND ITS CASE OR MAKE REPRESENTATIONS. ACCORDINGLY, WE ARE CONSTRAI NED TO PROCEED EX- PARTE IN THE ABSENCE OF THE ASSESSEE FOR ADJUDICATION. 3. THE REVENUE HAS ASSAILED THE ACTION OF THE CIT(A ) IN DELETING THE ADDITION OF RS.58,50,000/- MADE ON ACCOUNT OF DISCL OSURE OF UNACCOUNTED INCOME MADE DURING THE COURSE OF SURVEY CONDUCTED UNDER S.133A OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'T HE ACT'). SIMILAR DISCLOSURE OF RS.1,03,50,000/- TOWARDS UNACCOUNTED INCOME WERE ADMITTED IN THE HANDS OF OTHER GROUP CONCERN NAMELY VRAJ CORPORATION IN ITA NO.1101/AHD/2012 AY 2008-09 WHICH IS TAGGED TOG ETHER WITH THIS APPEAL. 4. BRIEFLY STATED, THE ASSESSEE IS A PARTNERSHIP-F IRM ENGAGED IN THE BUSINESS OF DEVELOPMENT OF RESIDENTIAL HOUSING PROJ ECTS STATED TO BE ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 3 - ELIGIBLE FOR DEDUCTION UNDER S.80IB(10) OF THE ACT. IN THIS CASE, SURVEY UNDER S.133A OF THE ACT WAS CARRIED OUT AT THE BUSI NESS PREMISES OF THE ASSESSEE AND ITS GROUP CONCERNS ON 06/09/2007. PUR SUANT TO SURVEY, ASSESSMENT UNDER S.143(3) OF THE ACT WAS COMPLETED WHEREIN THE ASSESSING OFFICER (AO) INTER-ALIA ADDED AN AMOUNT OF RS.58,50,000/- ON ACCOUNT OF DISCLOSURE MADE DURING THE COURSE OF SUR VEY AND NOT OFFERED FOR TAX IN THE RETURN OF INCOME BY THE ASSESSEE. 5. THE CIT(A), HOWEVER, OBSERVED THAT ONLY EVIDENCE TO SUPPORT THE ADDITION IS STATEMENT OF A PARTNER OF ASSESSEE GIVE N DURING THE COURSE OF SURVEY REGARDING RECEIPT OF UNACCOUNTED BOOKING AMO UNT FROM BUYERS. THE CIT(A) HELD THAT IN VIEW OF THE PROJECT COMPLE TION METHOD ADOPTED BY THE ASSESSEE, BOTH ACCOUNTED AS WELL AS UNACCOUNTED COMPONENT IS LIABILITY AND IS NOT INCOME OF THE IMP UGNED YEAR. HE ACCORDINGLY EXONERATED THE ASSESSEE FROM THE TAXABI LITY OF UNACCOUNTED INCOME DECLARED IN THE COURSE OF SURVEY. 6. THE REVENUE IS IN APPEAL AGAINST THE AFORESAID O RDER OF CIT(A). 7. NONE APPEARED FOR ASSESSEE AT THE TIME OF HEARIN G BEFORE TRIBUNAL. 8. THE LD.DR RELIED UPON THE ORDER OF THE AO AND SU BMITTED THAT THE ASSESSEE HAS VOLUNTARILY DISCLOSED UNACCOUNTED INCO ME DURING THE COURSE ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 4 - OF SURVEY ON DETECTION OF INCRIMINATING DOCUMENTS AND ALSO PAID TAXES THEREON. THE LD.DR SUBMITTED THAT UNDISCLOSED INCO ME WAS ADMITTED WITHOUT ANY SUBSEQUENT REFRACTION THEREOF AND THUS STANDS ACCRUED. IT WAS CONTENDED THAT THE ASSESSEE IS NOT ELIGIBLE FOR DEDUCTION UNDER S.80IB(10) OF THE ACT TOWARDS UNDISCLOSED INCOME. I T WAS CLAIMED THAT UNACCOUNTED INCOME GAINED IS REQUIRED TO BE TREATED AS INCOME OF THE ASSESSEE ON RECEIPT BASIS IN THE YEAR OF SURVEY AND NO BENEFIT OF SECTION 80IB(10) CAN BE EXTENDED ON SUCH UNACCOUNTED INCOME IN SURVEY DETECTED. 9. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE A UTHORITIES BELOW. FROM THE REPLY OF THE ASSESSEE DATED 29/10/2010 FIL ED BEFORE THE AO AS REPRODUCED IN PARA-2.6 OF THE ASSESSMENT ORDER, IT IS APPARENT THAT THE PARTNER OF THE ASSESSEE HAS UNEQUIVOCALLY CONFESSED BEFORE THE SURVEY TEAM THAT AN AMOUNT OF RS.58,50,000/- IS ATTRIBUTA BLE TO THE ASSESSEE TOWARDS UNACCOUNTED BOOKING RECEIPTS FROM THE BUSIN ESS OF DEVELOPMENT OF RESIDENTIAL HOUSING PROJECT NAMED VRAJBHOOMI TO WN SHIP. NO ATTEMPT HAS BEEN MADE BY THE ASSESSEE TO REBUT THE CONTENTS OF STATEMENT OF PARTNER IN CONFESSION OF UNDISCLOSED INCOME EVEN AT A LATER STAGE. THEREFORE, ADMISSION TOWARDS UNDISCLOSED INCOME HOL DS THE FIELD AS SACROSANCT AND VALUABLE PIECE OF EVIDENCE AGAINST T HE ASSESSEE. THE ASSESSEE HAS MERELY CLAIMED THAT THE ASSESSEE IS FO LLOWING PROJECT COMPLETION METHOD IN RESPECT OF CONSTRUCTION ACTIVI TY AND THUS THE ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 5 - TAXABLE EVENT OF UNDISCLOSED RECEIPT IS POSTPONED T O THE YEAR OF COMPLETION OF PROJECT. AT THE TIME OF FILING RETUR N OF INCOME, THE RECEIPTS ADMITTED IN THE COURSE OF SURVEY WAS SHOWN AS UNACCOUNTED BOOKING RECEIPTS UNDER THE HEAD CURRENT LIABILITIE S AND PROVISIONS IN VIEW OF PROJECT COMPLETION METHOD ADOPTED BY THE AS SESSEE. THE ASSESSEE MADE OUT A CASE BEFORE THE CIT(A) THAT THE AFORESAID DISCLOSURE OF RS.58,50,000/- OUGHT TO HAVE BEEN TREATED AS LI ABILITY AS CLAIMED AND THEREFORE THE AO COMMITTED ERROR IN TREATING THE SA ME AS UNDISCLOSED INCOME WITHOUT REJECTING THE BOOKS OF ACCOUNTS UNDE R S.145 OF THE ACT. IT IS FURTHER CLAIMED BY THE ASSESSEE THAT THE ASS ESSEE IS ENTITLED FOR DEDUCTION UNDER S.80IB(10) OF THE ACT ON ALLEGED UN ACCOUNTED INCOME OF RS.58,50,000/- SO DECLARED IN THE YEAR OF ACCRUAL. THE ASSESSEE THUS CLAIMED THAT UNDISCLOSED RECEIPT BEING OF THE CHAR ACTER OF LIABILITY CANNOT BE TAXED IN THE IMPUGNED ASSESSMENT YEAR. THE CIT( A) FOUND MERITS IN THE CLAIM OF ASSESSEE. THE CIT(A) WHILE GRANTING R ELIEF TO ASSESSEE OBSERVED THAT THE ONLY EVIDENCE IN POSSESSION OF TH E DEPARTMENT IS A STATEMENT OF THE PARTNER OF THE ASSESSEE-FIRM SHRI MAGANBHAI RADADIA GIVEN DURING THE COURSE OF SURVEY. THE CIT(A) NEX T OBSERVED THAT BOTH ACCOUNTED BOOKING AMOUNT AS WELL AS UNACCOUNTED COM PONENT HAS BEEN DECLARED AS LIABILITY IN THE BALANCE-SHEET FOR THE YEAR UNDER CONSIDERATION. WHILE ACCOUNTED COMPONENT HAS BEEN ACCEPTED AS LIAB ILITY, THE UNACCOUNTED COMPONENT OF BOOKING RECEIPTS HAS BEEN TREATED AS UNDISCLOSED INCOME WHICH IS CONTRADICTORY TO THE PR OJECT COMPLETION ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 6 - METHOD ADOPTED BY THE ASSESSEE. THE CIT(A) ACCORDI NGLY HELD THAT THE UNACCOUNTED BOOKING RECEIPTS ARE ALSO REQUIRED TO BE TAXED IN THE LATER YEAR IN WHICH THE HOUSING PROJECT HAS BEEN COMPLETE D. IT WAS OBSERVED BY THE CIT(A) THAT THE ENTIRE RECEIPTS INCLUDING UN ACCOUNTED RECEIPTS HAVE BEEN DECLARED AS INCOME IN SUBSEQUENT ASSESSM ENT YEAR 2010-11. 9.1. AT THIS JUNCTURE, IT WILL BE APT TO REPROD UCE THE RELEVANT FINDINGS OF THE CIT(A) AT THIS STAGE TO APPRECIATE THE CASE IN PERSPECTIVE. 10. DECISION 10.1. FROM THE PERUSAL OF THE ASSESSMENT ORDER AND THE SUBMISSION OF THE APPELLANT, IT IS APPARENT THAT TH E ONLY EVIDENCE IN THE POSSESSION OF THE DEPARTMENT IS A STATEMENT OF SHRI MAGANBHAI RADADIA GIVEN DURING THE COURSE OF SURVEY, REGARDIN G RECEIPT OF UNACCOUNTED BOOKING AMOUNT FROM BUYERS. IT IS ALSO A FACT THAT THE APPELLANT IS FOLLOWING PROJECT COMPLETION METHOD AND HAS SHOWN BOOKING AMOUNT RECEIVED FROM BUYERS, BOTH ACC OUNTED COMPONENT AND THE UNACCOUNTED COMPONENT AS LIABILIT Y IN THE BALANCE SHEET FOR THE YEAR UNDER CONSIDERATION. 10.2 THE ACCOUNTED BOOKING AMOUNT RECEIPT RECEIVED FROM BUYERS IS BEING SHOWN AS LIABILITY IN THE BALANCE SHEET FR OM YEAR TO YER AND THE WORK DONE IS BEING SHOWN AS WORK-IN-PROGRES S. THEREFORE, THE ASSESSING OFFICERS INTERPRETATION THAT THE UNA CCOUNTED BOOKING AMOUNT RECEIVED SHALL BE INCOME OF THE ASSTT YEAR 2 008-09 AMOUNTS TO CONTRADICTORY STAND ON THE PART OF THE A SSESSING OFFICER WHEREIN THE ACCOUNTED RECEIPTS ARE BEING TAXED ON T HE BASIS OF ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 7 - PROJECT COMPLETION METHOD WHILE THE UNACCOUNTED R ECEIPTS ARE BEING TAXED ON THE BASIS OF YEAR OF RECEIPT. 10.3. ONCE IT IS ESTABLISHED AND ACCEPTED I.E. THE APPELLANT IS FOLLOWING PROJECT COMPLETION METHOD OF ACCOUNTING THE BOOKING RECEIPTS BOTH ACCOUNTED OR UNACCOUNTED FORM PART OF THE SALE PROCEEDS OF THE PROJECT AND CAN BE TAXED ONLY ON TH E BASIS OF METHOD OF ACCOUNTING REGULARLY FOLLOWED BY THE APPE LLANT AND ACCEPTED BY THE DEPARTMENT. IT IS FOR THIS REASON THAT THE CIT(APPEALS) II, SURAT IN CAS/II/242/2010-11 HAS HE LD THAT SUCH RECEIPTS ARE TO BE TAXED IN THE YEAR IN WHICH, THE PROJECT IS COMPLETED. 10.4. IT IS ALSO NOTICED THAT APPELLANT HAS OFFERED THE ENTIRE RECEIPTS INCLUDING THE UNACCOUNTED RECEIPTS FOR TAX IN ASSTT YEAR 2010-11. THE TOTAL RECEIPTS SHOWN ARE AT RS.22,07, 09,699/- AND THE NET PROFIT SHOWN IS RS.7,48,35,944/- I.E. 33.9% OF THE RECEIPTS. THE BUC FOR THE PROJECT WAS RECEIVED IN ASSTT YEAR 2009-10. THEREFORE, THE PROJECT CANNOT BE CONSIDERED TO HAVE BEEN COMPLETED IN ASSTT YEAR 2008-09. IN ANY CASE AS PO SSESSION IS NOT POSSIBLE BEFORE B.U.C. THE APPELLANT HAS SHOWN INC OME IN ASSTT YEAR 2010-11 ON THE BASIS OF ITS CLAIM THAT POSSESS ION WAS GIVEN IN A.Y. 2010-11. 10.5. THEREFORE, CONSIDERING THE FACT THAT APPELLAN T IS FOLLOWING THE PROJECT COMPLETION METHOD AND THE SAID METHOD HAS BEEN ACCEPTED BY THE AO IN RESPECT OF ACCOUNTED RECEIPTS , IT IS HELD THAT UNACCOUNTED RECEIPTS ADMITTED DURING THE SURVEY TO THE EXTENT OF RS.58,50,000/- SHALL ALSO BE TAXED IN THE YEAR IN W HICH ACCOUNTED RECEIPTS ARE TAXED ON THE BASIS OF PROJECT COMPLET ION METHOD. THEREFORE, GROUND NOS.1, 2 AND 3 ARE DECIDED IN FAV OUR OF APPELLANT. GROUND NO.4 IS NOT BEING DECIDED AS THE ISSUE OF ELIGIBILITY FOR DEDUCTION U/S.80IB(10) WILL ARISE O NLY IN THE YEAR IN ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 8 - WHICH RECEIPTS ARE. TAXED. THE GROUND NO.5 IS OF G ENERAL NATURE AND DOES NOT REQUIRE ADJUDICATION. 10.6 FOR THE REMOVAL OF DOUBTS, IT IS CLARIFIED THA T NO EVIDENCE OF UNACCOUNTED EXPENDITURE WAS FOUND IN THIS CASE. TH EREFORE, APPELLANT IS NOT ENTITLED TO CLAIM ANY DEDUCTION OF EXPENSES OVER AND ABOVE WHAT HAS BEEN SHOWN IN BOOKS OF ACCOUNTS AND VERIFIED BY THE A.O. TO HIS SATISFACTION IN ANY FUTURE ASSES SMENT YEAR. 9.2. ON OBJECTIVE PERUSAL OF FACTS AS RECORDED BY T HE AO, WE OBSERVE THAT CONFESSIONAL STATEMENT MADE BY THE ASSESSEE WA S NOT ENTIRELY GIVEN IN VACUUM BUT CERTAIN INCRIMINATING DOCUMENTS AND M ATERIAL WERE ACTUALLY FOUND IN THE COURSE OF SURVEY AS REFERRED TO IN THE ASSESSMENT ORDER. BE THAT AS IT MAY, THE UNACCOUNTED RECEIPT AS PER CONFESSIONAL STATEMENT HAS NOT BEEN DISPUTED BY THE ASSESSEE. IN ESSENCE, THE LIMITED CONTROVERSY THUS ARISES IN THE PRESENT CASE IS WHET HER THE UNDISCLOSED INCOME ARISING ON ACCOUNT OF UNACCOUNTED BOOKING RE CEIPTS FROM ITS VARIOUS PURCHASERS IN RESIDENTIAL COMPLEX UNDER CON STRUCTION IS REQUIRED TO BE TAXED IN THE YEAR OF RECEIPT OR IN THE YEAR O F COMPLETION OF THE PROJECT IN SYNC WITH RECEIPTS DULY ACCOUNTED FOR. THE ASSESSEE HAS SOUGHT TO TREAT UNACCOUNTED ADDITIONAL CONSIDERATION IN CA SH ON SALE OF RESIDENTIAL FLATS (NOT FORMING PART OF THE SALE CON SIDERATION) AT PAR WITH ACCOUNTED PORTION OF CONSIDERATION SO RECEIVED. IT IS A ADMITTED POSITION THAT THE ASSESSEE HAS ACCEPTED THE AFORESAID ON-MON EY LAUNDERED IN CASH DETECTED IN THE COURSE OF SURVEY AS UNACCOUNTED INC OME. THE ASSESSEE, HOWEVER, WHILE FILING THE RETURN SUBSEQUENTLY HAS D ECLARED THE AFORESAID ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 9 - UNACCOUNTED RECEIPTS AS LIABILITY OF THE ASSESSEE AS AGAINST UNDISCLOSED INCOME CONFESSED AT THE TIME OF SURVEY. CONSEQUENT LY, THE ASSESSEE HAS SOUGHT TO TREAT UNACCOUNTED RECEIPT IN THE SAME P EDESTAL WITH COUNTER- PART, I.E. ACCOUNTED RECEIPT AND PROPOSED TO OFFE R THE SAID INCOME IN THE YEAR OF COMPLETION OF RESIDENTIAL PROJECT SUBJECT TO DEDUCTION AS AVAILABLE IN TERMS OF SECTION 80IB(10) OF THE ACT. IN EFFECT, BY DOING SO, THE ASSESSEE SEEKS ESCAPE THE TAX LIABILITY COMPLET ELY ON THE UNACCOUNTED RECEIPTS FIRST BY POSTPONEMENT OF TAXABLE EVENT AND SECONDLY TAKING REFUGE OF SECTION 80IB(10) OF THE ACT IN THE YEAR O F COMPLETION OF PROJECT. 9.3. THE MOOT QUESTION THAT FLOWS IN THE GIVEN FA CT SITUATION IS WHETHER UNACCOUNTED RECEIPTS CAN BE TREATED AT PAR AND EQU ATED WITH THE ACCOUNTED RECEIPT FOR THE PURPOSE OF DETERMINATION OF CRYSTALLIZATION OF YEAR OF INCOME. ORDINARILY, THE INCOME FROM A RECE IPT IS DEEMED TO BE ACCRUED IN THE YEAR IN WHICH THE LEGAL RIGHT TO REC EIVE IS CRYSTALLIZED. AN ACCRUAL CANNOT BE EQUATED WITH RECEIPT. HAVING SAID SO, IN THE INSTANT CASE, THE UNACCOUNTED INCOME HAS BEEN RECEIVED FROM THE BUYERS FOR WHICH THERE IS NO LEGAL LIABILITY TO RETURN IN THE EVENT OF CANCELLATION. NEEDLESS TO SAY, THE UNACCOUNTED HIDDEN INCOME IS O VER AND ABOVE THE CONTRACTED AMOUNT RECEIVED OR TO BE RECEIVED AS PE R SALE DEED. THE EXTRA-ORDINARY INCOME TOWARDS UNACCOUNTED RECEIPT T HEREFORE HAS IMMEDIATELY GOT VESTED AND MATERIALIZED ON ITS RECE IPT ON ACCEPTANCE OF ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 10 - LEGAL OBLIGATION TO DISCHARGE THE CONTRACT TOWARDS ACCOUNTED PORTION. THEREFORE, EVEN IN ITS ORDINARY ECONOMIC SENSE, IT WILL BE FARFETCHED TO SAY THAT THE UNACCOUNTED INCOME CONTINUES TO BE OF LIABILITY IN CHARACTER TILL THE COMPLETION OF THE PROJECT AS CLAIMED. TH US, THE UNACCOUNTED INCOME WOULD BE ORDINARILY TAXABLE ON RECEIPT BASIS . WE ALSO TAKE GUIDANCE FROM THE DECISION OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF FIFTH AVENUE VS. CIT REPORTED IN 319 ITR 12 7 (KAR.) APPROVED BY THE HONBLE SUPREME COURT REPORTED IN 319 ITR 132(S C) IN THIS REGARD. 9.4.. IT IS PERTINENT TO NOTE HERE ON FACTS THAT A SSESSEE HAS NOT EVEN IDENTIFIED THE CUSTOMERS FROM WHOM SUCH UNACCOUNTED RECEIPTS WERE RECEIVED TO ASCERTAIN THE PURPORTED EXISTENCE OF OB LIGATION TO RETURN THE ON-MONEY, IF ANY. OBVIOUSLY, LIABILITY TOWARDS UN ACCOUNTED RECEIPT WRAPPED WITH ANONYMITY CANNOT BE SIMPLY PRESUMED. THEREFORE, WE ARE OF THE VIEW THAT UNDISCLOSED RECEIPTS DETECTED DURING THE SURVEY IS LIABLE TO BE TAXED IN THE YEAR OF ACTUAL RECEIPT IT SELF AND NOT DEPENDENT ON COMPLETION OF PROJECT AS CLAIMED. WE ARE OF THE OPINION THAT THE CIT(A) HAS WRONGLY APPRECIATED THE FACTS IN THIS RE GARD AND CONSEQUENTLY THE CONCLUSION OF THE CIT(A) REQUIRES TO BE SET ASI DE AND QUASHED AND ORDER OF THE AO IS REQUIRED TO BE RESTORED. 9.5. AS OBSERVED, THE TAXABILITY OF UNACCOUNTED I NCOME DETECTED IN THE COURSE OF SURVEY CANNOT BE DEFERRED TO THE YEAR OF COMPLETION OF PROJECT ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 11 - ON THE GROUNDS OF POSSIBILITY OF RETURN OF ON-MONEY IN THE EVENT OF CANCELLATION OF CONTRACT WHICH IN OUR VIEW IS UTTER LY REMOTE AND IMPROBABLE. THE ASSESSEE HOWEVER, SHALL BE ENTITLE D TO DEDUCTION UNDER S.80IB(10) OF THE ACT IN ASSESSMENT YEAR IN PRESE NT APPEAL ON SHOWING TO THE SATISFACTION OF THE AO THAT CONDITIONS STIPU LATED THEREIN HAVE BEEN COMPLIED WITH IN ACCORDANCE WITH LAW. TO THIS LIM ITED EXTENT, FOR ASCERTAINMENT OF QUANTUM OF DEDUCTION ELIGIBLE UNDE R S.80IB(10) IF ANY, THE ISSUE IS SET ASIDE TO THE FILE OF AO FOR DETERM INATION IN ACCORDANCE WITH LAW. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO.2167/AHD/2012 FOR AY 2008-09 IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.2168/AHD/2012 FOR AY 2008-09 IN THE CASE O F M/S.VRAJ CORPORATION 11. IN THIS APPEAL, THE DISCLOSURE OF UNACCOUNTED I NCOME OF RS.1,03,50,000/- WAS MADE BY THE ASSESSEE TOWARDS U NACCOUNTED RECEIPTS FROM UNDER CONSTRUCTION RESIDENTIAL PROJECT SIMILAR TO ITA NO.2167/AHD/2012. THE CIT(A) HAS REVERSED THE AC TION OF AO IN BRINGING THE UNACCOUNTED INCOME TO TAX IN THE YEAR OF RECEIPT UNDER APPEAL ON SIMILAR GROUNDS. SINCE THE GROUND RAISED BY THE REVENUE IN THIS CASE IS SIMILAR TO THE CASE OF M/S.VRAJ DEVELOPERS IN ITA NO.2167/AHD/2012 FOR AY 2008-09(SUPRA), OBSERVATION S MADE IN THAT ITA NOS.2167 & 2168/AHD/2012 ACIT VS. M/S.VRAJ DEVELOPERS/VRAJ CORPORATION ASST.YEAR 2008-09 - 12 - CASE WILL APPLY MUTATIS MUTANDIS TO THE PRESENT APPEAL. IN PARITY WITH THE REASONS ASSIGNED, THE APPEAL OF THE REVENUE IN THE CASE OF M/S.VRAJ CORPORATION (ITA NO.2168/AHD/2012-AY 2008-09) IS AL LOWED FOR STATISTICAL PURPOSES. 12. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 30/ 03 /2017 SD/- SD/- ( ) ( ) ( MAHAVIR PRASAD ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 30/ 03 /2017 2..(,.(../ T.C. NAIR, SR. PS !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. #$ / THE APPELLANT 2. %#$ / THE RESPONDENT. 3. 345* 6* / CONCERNED CIT 4. 6* ( ) / THE CIT(A)-I, SURAT 5. 789*(45 , 45 . , 3 / DR, ITAT, AHMEDABAD 6. 9:) / GUARD FILE. / BY ORDER, %7** //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD