The Assessee, a company engaged in construction, was subject to a search under section 132 of the Income-tax Act during which unaccounted cash was found. In a statement recorded under section 132(4), the company’s directors admitted to charging ‘on-money’ on all projects relating to residential and commercial properties. The Assessing Officer estimated on-money at ₹81.55 lakh based on the proportion of on-money to gross receipts ratio in the case of its group concern and added ₹76.55 lakh after adjusting the disclosed amount. On appeal, the CIT(A) reduced the addition to ₹3.81 lakh (Being 10% of the gross receipts on all projects excluding project Sarjan), holding that no on-money was received on a major project (‘Sarjan’) where prices were advertised publicly. On appeal by the Department, the Tribunal held that the directors’ admission and cash found during search justified the receipt of on-money and directed the Assessing Officer to compute on-money at 10% of total receipts, including the Sarjan project.  Aggrieved, the Assessee approached the Hon’ble Gujarat High Court, which upheld the Tribunal’s order, observing that the estimation of the quantum of on-money was based on voluntary admission corroborated by evidence and was a finding of fact. Further, the High court  observed that the addition was sustained by the CIT(A) and that the order of the Tribunal was only concerned with the quantum of the on-money based on the fact that the Assessee was in receipt of the on-money. The Court dismissed the appeal.  (AY. 1993-94)