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2016 (4) TMI 415 - ITAT PUNE

2016 (4) TMI 415 - ITAT PUNE - TMI - Valuation of WIP - Held that:- When the value determined by the City Civil court has been considered by the AO as the closing WIP, therefore, in absence of any contrary material brought to our notice we do not find any infirmity in the order of the CIT(A) upholding the order of the AO. - Decided against assessee. - ITA No. 395/PN/2014 - Dated:- 30-12-2015 - R. K. Panda, AM And Vikas Awasthy, JM For the Appellant : Shri Nikhil Pathak For the Respondent : Shri .....

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The Ld.CIT(A) erred in confirming the action of the Ld.A.O. in valuing the WIP at ₹ 2,41,80,000/- as against the value of ₹ 7,53,48,000/- claimed by the assessee. Without prejudice to the above ground, the assessee submits as under : 3. The Ld.CIT(A) erred in holding that the Ld. A.O. was justified in valuing the closing WIP in respect of DN Mulik Complex on the basis of the decision of District Civil Court without appreciating that the said decision was not accepted by the assessee .....

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the Kolte Patil group of companies which is engaged in the business of development of Real estate, purchase and sale of land etc. During the course of assessment proceedings, the AO noted that the closing WIP of the assessee firm is inclusive of ₹ 7.53 crores on account of the transaction of the assessee firm with Shri D.N. Mulik. The working of this WIP is as under : Construction work done of D.N. Mulik Complex - ₹ 5,48,48,000/- Provision for damages (D.N. Mulik) - ₹ 2,05,00, .....

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e Hon'ble High Court against this order. Further, the WIP is as per books of account and supported by the external supporting evidences. 7. However, the AO was not satisfied with the explanation given by the assessee. According to him, the decision of City Civil Court has clearly ordered the work done and provision as mentioned above. Therefore, the WIP in respect of Mr. D.N. Mulik Complex was disallowed by the AO to the extent of ₹ 5,11,68,000/-. 8. Before CIT(A) the assessee submitte .....

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t ₹ 7,53,48,000/- in the books of account. The assessee further stated that in the order passed by Civil Court, the value of work-in-progress of Mulik Complex has been determined at ₹ 2,41,80,000/- which consists of cost of construction work undertaking at ₹ 1,88,00,000/- and provision for damages to be recovered from Shri Mulik at ₹ 53,80,000/-. It was submitted that the decision of the Civil Court has not been accepted and an appeal has been filed. 9. However, the CIT(A .....

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e City Civil Court dated 03.01.2007. On perusal of the aforesaid order of the Hon'ble Civil Court it is seen that the Court has arrived at the finding after taking into account the contentions raised by the parties to the suits which included the appellant and its partners. It is also noticed that the issue has been deeply examined by the Court and the above figures arrived at after taking into consideration the contentions raised by the appellant. In view of the above facts, though the deci .....

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