TMI Blog2022 (1) TMI 1357X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering the Satakhat dated 04.04.2011 and pass the order in accordance with law. In the result the ground No. III is allowed for statistical purpose. Addition is made on estimation of income/project - The issue relevant to estimation of income of AOP is interlinked and also remitted back to CIT(A) to adjudicate the same after adjudication of ground of appeal in A.Y. 2011-12. The assessee is given liberty to file evidence / additional evidence to substantiate the ground of appeal and move appropriate application in case fresh/new evidence is filed to substantiate its ground of appeal or its contention. - ITA No. 1150/AHD/2016, ITA No. 1151/AHD/2016 - - - Dated:- 11-1-2022 - SHRI PAWAN SINGH, JUDICIAL MEMBER AND DR. ARJUN LAL SAIN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tivity in A.Y.2011/12 as the project commenced in A.Y.2012/13. III. The learned CIT(A) has grievously erred in law and on facts in confirming the addition of Rs. 40,00,000/- on account of payment of consideration of purchase of plots already recorded in the books of accounts of Bhaveshbhai Arvindbhai Buha (Individual) and supported by a Satakhat. The addition of Rs. 40,00,000/- should be deleted. The appellant reserves the right to add, alter, modify, amend or withdraw any of the grounds of appeal before hearing. 2. Brief facts of the case are that a survey action under section 133A of the Act was carried out in case of project Sai Ashish Residency situated at Baben, Kharvasa Road, Bardoli, Surat on 16.12.2012. Before making sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hand of Shri Bhavesh Bunha. However, no such evidence was find on record, therefore, these appeals were fixed for clarification. The ld AR for the assessee on the merit of the grounds of appeal submits that the assessee has basically raised two grounds of appeal. In Ground No.I and II, the assessee assailed the status of assessee as AOP and in Ground No.III, the assessee has assailed the order of lower Authorities in confirming the addition on account of investment. The ld.AR of the assessee further submits that second ground of appeal raised in Ground No.III relates to investment in purchase of land, which was the subject matter of development of project, if it is held that consideration was paid in individual capacity and if it is fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment order under section 144 r.w.s 147 of the Act by treating assessee as AOP. The AO further made addition on account of unexplained investment of Rs.50 lakhs. The ld.CIT(A), confirmed the action of AO by taking view that the assessee has filed additional evidence, which was not filed before AO and that no application for admission of additional evidence is filed by the assessee. Before, us the ld AR for the assessee vehemently submitted that the same AO was making assessment for the year under consideration as well as for two subsequent years and that the copy of Satakhat was filed in AY 2012-13. We find that before the ld. CIT(A), the assessee filed copy of Satakhat dated 04.04.2011, copy of which is at page no.36 to 41 of pap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of Bhaveshbhai Arvindbhai Buha in his Individual capacity as per the Returns of Income filed with Dy. Commissioner of Income-tax, CC-2, Surat. The Status of AOP be held as null and void as the same is determined by Assessing Officer disregarding the legitimate right of Assessee to choose the entity of assessment/Business. II. The learned CIT(A) has grievously erred in law and on facts in confirming the addition by estimate at Rs.4,50,00,870/- based on the incorrect statement of Bhaveshbhai Arvindbhai Buha. The CIT(A) failed to appreciate the incomplete project, total cost of construction of Rs. 2,83,45,472/-, profit of Rs. 22,67,018/- following percentage completion method, the Work in progress at Rs. 5,24,50,223/- shown in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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