TMI Blog2020 (10) TMI 269X X X X Extracts X X X X X X X X Extracts X X X X ..... property. Difference amount contained in form 26AS and shown in the profit and loss account was brought to tax. This is an issue which requires to be decided having regard to the terms of the joint development agreement and the intention of the parties to the agreement. Intention of the parties can be gauged from the entries made in the books of account. Entries in the books of account clearly goes to show that the assessee is only a partner in the development of scheduled property of the agreement. No addition can be made based on a mere difference between form 26AS and the amount shown in the profit and loss account and in the absence of any reconciliation and corroborative evidence. It is not the case of the Revenue that there is lea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eement with M/s. Dugar Housing Ltd. the assessee had recognised income as per the percentage of completion basis and offered the same for taxation and hence con firming the addition on me stated pretext that the appellant being a land owner and did not undertake any construction contract was unjustified on the facts of the case. 5. The Commissioner of Income-tax (Appeals) further failed to appreciate that as per the joint venture, the assessee and Dugar Housing Ltd. have equal onus in the development of property and hence rightly offered its share of income from sale of flats for the current year on the project completion basis and therefore the addition is unsustainable on the facts of the case. 6. The Commissioner of Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition made by officer without pointing out any deficiency in the working of the income by the assessee. 11. The Commissioner of Income-tax (Appeals) in any view of the matter, ought to have considered the contentions of the assessee in the proper perspective and deleted the addition made to the returned income of the assessee. 3. The brief facts of the case are as under : The appellant, namely, M/s. Sree Sankeswara Foundations and Investments is a partnership firm constituted under the Partnership Act. It is engaged in the business of real estate. The return of income for the assessment year 2016-17 was filed on October 17, 2016 disclosing a total income of ₹ 1,32,31,560. Against the said return of income, the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee had entered into a joint development agreement with M/s. Dugar Housing Limited on March 16, 2012. In terms of the joint development agreement, the assessee had contributed land towards his share. It is submitted that the joint development agreement is entered into between the assessee, land developer and the land owners. Share of the land was not transferred to the developer. The sale proceeds of the built up area were shared between the developer and the land owner in the agreed ratio. Thus, it is submitted that no addition can be made, when the assessee has been following the percentage of completion method. 6. On the other hand, the learned Departmental representative opposed the above submission and submitted that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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