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2017 (2) TMI 67 - AT - Income TaxAddition on account of flat sold in Balaji Avenues - AO rejected method of accounting on the ground that profit from one of its projects is not offered to tax in the year under consideration by observing that project was completed in the Assessment Year 2011-2012 only. - Held that:- From the record, we found that the possession of all flat owners of Balaji Avenue was not handed over by the assessee in the year under consideration and actual possession was handed over in financial year 2011-12 relevant to the assessment year 2012-2013. Corresponding income has also been offered by AO in the Assessment Year 2012-13. A clear finding to this effect has also been recorded by CIT(A). In view of this finding, CIT(A) was justified in deleting the addition of ₹ 58,97,073/- on account of flat sold in Balaji Avenues. Addition on account of large variation in the rates of sale of flats - Held that:- AO has made detailed working to find out cash component of sale price not accounted for. The AO has drawn Annexure-II and Annexure-III to find out sale price on the basis of date of booking of flat, flat number, area, agreement value, booking date, advance received etc., However, without controverting all these findings of the AO, CIT(A) after giving general observation deleted the addition. We do not find any merit in the order of CIT(A). Accordingly, the same is set aside and matter is restored back to him for deciding afresh after controverting the findings recorded by AO as discussed above.
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