Summary
- The ITAT Mumbai has allowed Sumer Builders to claim ₹42.44 crore in project expenditure against undisclosed on-money, reversing earlier disallowances by the CIT(A).
- The Tribunal emphasized the need for proper opportunity to substantiate claims and admitted additional evidence regarding project expenditures.
- It ruled that only 10% of disclosed on-money receipts would be taxable in AY 2011-12, aligning with the assessee's established accounting method.
- This decision could set a precedent for how undisclosed cash receipts and related expenditures are treated in future tax assessments.
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