TMI Blog2010 (11) TMI 1088X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee filed return declaring income at Rs.Nil. Thereafter notice u/s.148 was issued on the ground that the assessee had shown work in progress at ₹ 23,32,66,919 in the books of account without offering any income for taxation. In response to notice u/s.148, the assessee filed letter requesting the A.O. to treat the original return filed as the one in response to notice u/s.148. The Assessing Officer noted that the assessee is a contractor following cash system of accounting. The assessee firm having two partners viz. M/s.Mayuresh Builders and M/s.Satlaj Properties entered into an agreement with two housing societies viz. M/s.Sea Breeze Co-operative Housing Society and M/s.Sagar Darshan Co-op. Housing Society, which were formed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar addition by applying 15% profit rate which was finally deleted by the Tribunal vide its order dated 18.01.2005 in ITA No.648/Mum/2001. Copy of the said order is available on record. In assessment year 1999-2000 when the assessee-firm filed return, the A.O. again made addition by estimating profit at the rate of 15% on the sale proceeds which addition came to be deleted by the Tribunal vide its order dated 13.02.2009 in ITA No.4787/Mum/2007. Similarly for assessment year 1998-99 such addition made was deleted. The learned A.R. has placed on record a copy of the assessment order passed u/s.143(3) for assessment year 2001-2002 in which return was filed declaring Nil income and the same was assessed as such, meaning thereby that the work in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 2001-2002 has noted that the total work in progress was only ₹ 19.59 crores. It was, therefore, contended that there was a possibility of the contracts getting completed in the assessment year under consideration and in the next year some new projects being taken up by the assessee. In the light of these facts it was contended that the factual matrix requires consideration at the Assessing Officer s end. We are agreeable with the view point canvassed by the learned Departmental Representative on the ground that if in the assessment year 1997-98 work in progress is more than ₹ 60 crore as taken note of by the Tribunal and the assessee-firm took over the project as such from M/s.Mayuresh Builders, the work in progress ..... X X X X Extracts X X X X X X X X Extracts X X X X
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