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The DCIT Central Circle- 2, Jaipur Versus M/s. Unique Builders & Developers (Rama) , M/s. Murano Developers (P) Ltd.

2016 (5) TMI 966 - ITAT JAIPUR

Rejection of books of accounts - Method of accounting and accounting standard - Held that:- It is neither proper nor justified to hold that the books of account maintained by the assessee did not present true and complete picture of its accounts and financial transactions. It is a case where accounts of the assessee are correct and complete. Method of accounting and accounting standard has been regularly followed. True and correct profits of the business of the assessee could be deduced from suc .....

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r section 144 of the Act. We, therefore, set aside the decision in this regard - Decided in favour of assessee - ITA No. 148/JP/2014, ITA No. 149/JP/2014, ITA No. 150/JP/2014 - Dated:- 13-5-2016 - Shri Kul Bharat, JM And Shri Vikram Singh Yadav, AM For the Revenue : Ms. Roshanta Meena, JCIT-DR For the Assessee : Shri Varun Bansal, CA ORDER Per Kul Bharat, JM These appeals of the Revenue are directed against separate orders of the ld. CIT(A)-Central, Jaipur dated 17-12-2013, 16-12-2013 and 12- 12 .....

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r and seized documents like A-2/51 found from the laptop of Shri Navin Bhutani and A-2/19 found from the partner (Shri Vibhishek Pal Singh) reflect on money received. 2. On the facts and in the circumstances of the case, the ld. CIT(A) Jaipur has erred in rejecting application of percentage completion method adopted by the AO when this rejection means acceptance of loss return of the assessee engaged in construction and sale of residential/ commercial projects. 3. On the facts and in the circums .....

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2 of the Revenue that on similar issue the ITAT Coordinate Bench has decided the issue in question in favour of the assessee vide its order dated 14-03-2013 (assessee's Group case in ITA Nos.73 to 77/JP/2012 and 689 to 690/JP/2012 for the A.Y. 2003-04, 04- 05, 05-06,06-07,09-10, 07-08 & 08-09). 2.2 The ld. DR relied on the order of the AO. 2.3 We have heard the rival contentions and perused the materials available on record. It emerges from the record that on similar issues the Coordina .....

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t and complete. Method of accounting and accounting standard has been regularly followed. True and correct profits of the business of the assessee could be deduced from such books of accounts. In this view of the matter the assessing authority could not change the method regularly adopted by the assessee from Project Completion Method to Percentage Completion Method on irrelevant considerations. We are, therefore, satisfied that provisions of section 145(3) are not attracted in this case. The Ld .....

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iew of the similar facts and circumstances of the assessee's case and respectfully following the decision of Coordinate Bench in assessee's own case (supra), the Ground No. 1 and 2 of the Revenue are dismissed. 3.1 As regards Ground No. 3, we find that this issue has neither arisen from the order of the AO nor from the order of the ld. CIT(A). In this view of the matter, we do not feel to adjudicate the same and hence the same is infructuous. 4.1 As regards the Ground No. 4 of the Revenu .....

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e assessee and against the Revenue by following observation. 19. We have carefully considered the submissions of ld. representatives of both the parties. It is a fact that the said addition of ₹ 76,93,120/- has been made merely on the basis of the DVO s report and considering that the assessee has not fully explained the investment and/ or there is unexplained expenditure. No document or evidence has been brought on record to establish that the assessee has paid any amount over and above t .....

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T vs. Naveen Gera 328 ITR 516 and in the case of CIT vs. Smt. Suraj Devi 328 itr607 have held that in absence of any incriminating material, the actual consideration as per agreement has to be accepted and no addition can be made in the case of buyer because of difference between stamp duty valuation of the property and actual consideration as per the agreement. Primary burden of proof to prove understatement or concealment of income is on the Revenue and it is only when such burden is discharge .....

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son or persons on or after first day of June 2010 any property for a consideration which is less than aggregate fair market value of the property by an amount exceeding ₹ 50,000/-, the aggregate fair market value of such property as exceeds such consideration shall be chargeable to tax as income from other sources. Since the assessee herein is the buyer of the land, since the said provision has come into effect w.e.f. first June, 2010, we are of the considered view that even no addition ca .....

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t. Accordingly Ground No. 3 of the appeal taken by the assessee for the assessment year 2008-09 is allowed. The ld. CIT(A) has also decided the above ground of the appeal raised by the Revenue in favour of the assessee considering the ITAT judgement (supra). In view of the similar facts and circumstances of the assessee's case and respectfully following the decision of Coordinate Bench in assessee's own case (supra), the Ground No. 4 of the Revenue is dismissed. ITA No. 149/JP/2014 - Uni .....

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icated on money received on flats sold 3. On the facts and in the circumstances of the case, the ld. CIT(A) Jaipur has erred in rejecting application of percentage completion method adopted by the AO when this rejection means acceptance of loss return of the assessee engaged in construction and sale of residential/ commercial projects. 4. On the facts and in the circumstances of the case, ld. CIT(A) Jaipur has erred in ignoring the facts that the two brothers - Shri Ajay Pal Singh and Shri Ajit .....

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e Bench in assessee's own case in ITA No. 587 & 588 for the assessment year 2008-09 and Revenue s appeal in ITA No. 623/JP/2012 for the assessment year 2009-10. We find that both the issues have been decided by this Bench in favour of the assessee by following observations. 13. Considering entire conspectus of the case in the light of the peculiar facts and findings reached herein before in this case, it is neither proper nor justified to hold that the books of account maintained by the .....

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Completion Method on irrelevant considerations. We are, therefore, satisfied that provisions of section 145(3) are not attracted in this case. The Ld. CIT (A), is found to have erred in upholding the decision of Ld. Assessing Authority to invoke section 145(3) of the Act and making assessment in the manner provided under section 144 of the Act. We, therefore, set aside the decision in this regard and allow ground nos. 2 & 3 raised in appeal by the assessee in assessment year 2003-04. The ld. .....

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s erred in deleting the addition of ₹ 1,74,09,574/- u/s 145(3) when the assessee is not maintaining quantitative and qualitative stock register. 2. On the facts and in the circumstances of the case, the ld. CIT(A) Jaipur has erred in rejecting application of percentage completion method adopted by the AO when this rejection means acceptance of loss return of the assessee engaged in construction and sale of residential/ commercial projects. 7.1 At outset of the hearing, the ld. AR of the as .....

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