TMI Blog2023 (1) TMI 820X X X X Extracts X X X X X X X X Extracts X X X X ..... raised by the assessee are allowed. Provision made for pending work is not an allowable deduction - It is not the case of PCIT that the AO had not enquired into this issue during the course of scrutiny assessment proceedings and no enquiry was made by the AO. The ld. AR argued that the facts and circumstances of the present case are similar to the facts and circumstances in the case of M/s. Rohan Developers [ 2021 (1) TMI 990 - ITAT PUNE ] and vehemently argued that the PCIT had no jurisdiction to exercise power of revision u/s. 263 - DR relied on the order of PCIT. We note that as rightly pointed by the ld. AR that the AO in scrutiny assessment proceedings asked the assessee to submit all the details which is evident from assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT held that the order dated 07-12- 2017 passed by the AO u/s. 143(3) of the Act is erroneous and prejudicial to the interest of revenue and directed the AO to assess the issue afresh by placing cogent evidence on record, by holding that the AO has not taken into account income on notional basis in respect of property held by the assessee stock-in-trade and no provision would be made for expenses on some works of common area like entrance lobby, compound wall, main gate, etc. 4. Before us no arguments advanced by the ld. AR in respect of ground No. 1 and in view of the same, ground No. 1 raised by the assessee is treated as not pressed. 5. Ground Nos. 2, 3 and 4 are in respect of deemed rent on unsold units. The ld. AR submits that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Balance sheet and taxable on its sale in the next subsequent years as business income. The ld. DR did not dispute the treatment of unsold flats as stockin- trade by the assessee and also offering as same as business income in the subsequent years. Therefore, following the same the assessment year being 2015-16, we, by holding the amendment brought in by Finance Act, 2017 w.e.f. 01-04-2018 is not applicable and no addition is maintainable on account of deemed rent on unsold flats which is treated as stock-intrade by the assessee. Thus, the order of CIT(A) is not justified and it is set aside. Accordingly, ground Nos. 2, 3 and 4 raised by the assessee are allowed. 7. Ground Nos. 5 and 6 are relating to holding the provision made for pendi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der and it is also not the case of PCIT that the AO did not enquire into the issues relating to the subject of show cause notice to 263 proceedings. On perusal of the impugned order in respect of the issue of provision made for expenses to be incurred in the case of un-finished works which were claimed through profit and loss account is allowable which were made on adhc basis. As held by this Tribunal in the case of M/s. Rohan Developers (supra) that the twin conditions of erroneous and prejudicial to the interest of revenue should exist simultaneously and the PCIT should satisfy before coming to a conclusion as to exercise jurisdiction u/s. 263 of the Act by placing a material on record. On an examination of impugned order passed by the PC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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