search servey and seizure

ii) Wall Street Construction ltd. v/s ACITITA No. 1759/Bom/1995 dt. 7.8.95iii)M/s. Kanakia Builders & Ors. v/s ACITITA (SS) No. 14 to 31/Mum/96 dt. 21.11.97Q. 3 Whether the judgement passed in the case of Commr. of Sales Tax v/s. H.M. Esufalli's, H. M. Abdulali reported in 90 ITR 271 (SC.) relating toEstimation of profit in case of search cases is a good law and whether thedecision in the said case is binding on all assessees?Ans. No, in the said case the Apex Court had upheld the estimation of sale outside books of Accounts. This decision cannot be applied universally as thefacts of the said case were that no material was furnished before officerand it was an Exparte assessment and further this was the case of salestax. Reliance can be placed on the following judgements :(i)(ii)(iii)(iv)60 ITR 239 (SC) State of Kerala v/s Vellukutty.49 ITR 95 (Pat) Chetandas Gulabchand v/s CIT207 ITR 979 (Cal) CIT v/s Ranicherra Tea Co. Ltd.37 ITR 1(SC) Calcuta Co. Ltd. v/s CIT.BUSINESS EXPENDITURE :Q.4 What would be the tax treatment in the case of On money received by aBuilder, following Project completion method of accounting?Ans. In the case of Builder following Project completion method of accounting,the On money component would be taxed as his business income in theyear when the Project is completed. If the Assessee is liable to tax in theyear of handing over possession then the On money component wouldalso be taxed as his business in the year when the possession is handedover.Q.5 Whether the expenditure incurred On payments made to GovernmentOfficials is an allowable expenditure?Ans. Upto 31.3.2000 any expenditure incurred towards payments toGovernment Officials were treated as allowable expenditure. However the