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2018 (8) TMI 193 - AT - Income TaxReopening of assessments - Addition on sale of 12 flats - Held that:- The assessee has furnished the assessment order dated 08.1.2008 in the paper book and from the assessment order, there was no noting regarding the verification of the parking fees collected by the assessee and the sale proceeds received for 9 flats and admission of income and the closing stock etc. The Ld.AR also did not establish with tangible evidence that the AO has examined the details and taken a conscious decision. Further, the assessment is reopened within 4 years from the end of relevant assessment year and the case does not fall under the proviso to section 147. Once the case does not fall under the proviso to section 147 the belief of the assessing officer is sufficient with regard to escapement of income. See M/s Rajesh Jhaveri Stock Brokers(2007 (5) TMI 197 - SUPREME COURT). On merits of addition it is established that as on the date of sale, the construction was not complete and there was a time limit for assessee to complete the construction. Since the assessee is following construction completion method, the assessee has admitted the certified value of construction of ₹ 31,40,950/- which works out to 72% of the sale value. The stage of completion of work was certified by the approved Panel Engineer and the AO has not brought on record to establish that the assessee has completed the construction more than the value certified by the engineer. Therefore, we hold that the assessee has correctly admitted the sum of ₹ 31,40,950/- towards the value of construction upto 31.03.2006, no further addition is required. The remaining sale proceeds were already admitted by the assessee in subsequent year in respect of 9 flats. Accordingly, we hold that the assessee has correctly, admitted the sale value in respect of 9 flats and no further addition is required. Therefore, the order of the Ld.CIT(A) is set aside and the addition made by the AO is deleted. The appeal of the assessee on this ground is allowed.
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