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TMI Blog2023 (6) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... he Hon'ble Principal Commissioner of Income Tax - 4, Hyderabad erred in holding that the Assessing Officer has not conducted a proper examination of the receipts pertaining to the sale of various flats, where the receipts are less than the amount reflected in Form 26AS. Ground No. 3: The Hon'ble Principal Commissioner of Income Tax - 4, Hyderabad failed to appreciate the reasons for the alleged difference between income reported by the Appellant and amount reflected in Form 26AJ In respect of various flats. Ground No. 4: The Hon'ble Principal Commissioner of Income Tax - 4, Hyderabad 1ailed to appreciate that any difference in income reported by the Appellant and amount reflected in Form 26AS is on account of timing of reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.37,79,400/-. The Assessing Officer completed the assessment u/s 143(3) of the Act on 24.05.2018 accepting the income returned as per the return of income filed. 4. The PCIT examined the record and noted that the Assessing Officer considered the receipts admitted on the sale of plots which are less than the amount shown as per 26AS. On verification of detailed statement of flats sold by the assessee, the PCIT observed that an amount of Rs.44,66,429/- was shown as receipts from Sri Anto George & EML Anto whereas the amount was shown at Rs.58,07,802/- as per 26AS statement. Similar defaults were observed in the cases of Sri Saptarshi Mohanti, Sri Aravinda Mohanty, Sr. V Padmanabhan, Ms. Rashmi Ranja Patra etc. 5. The learned PCIT rejectin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tunity of being heard to the assessee before passing the consequential order." 6. Aggrieved with such order of the learned PCIT, the assessee is in appeal before the Tribunal. 7. The learned Counsel for the assessee, at the outset, submitted that the Assessing Officer in the original assessment proceedings has sought to examine the limited scrutiny issue and for that purpose the Assessing Officer had issued show-cause notice to the assessee. In reply to the show-cause notice, the assessee had furnished the details as called for and our attention was drawn to page 27 of the Paper Book wherein the reply of the assessee has been placed on record. As per the said reply (para 4 & 5), the case of the assessee before the Assessing Officer was th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... drew the attention of the Bench to page 44 of the paper book wherein the detail of the payment received, TDS deducted and the year of credit has been mentioned in respect of these 5 persons. For the above, he drew the attention of the Bench to page 44 of the paper book wherein as per Annexure 3 details of receipts received and offered to tax in preceding or succeeding years are given: 8. On the basis of the above table, it was submitted that once the income had been offered for various A.Ys, then it cannot be said that the order passed by the Assessing Officer has become erroneous and prejudicial to the interest of the Revenue. He relied upon the decision of the Hon'ble Supreme Court in the case of Malabar Industries Ltd. 9. Per contr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is less than sale consideration reported in Form 26QB, the assessee submitted that "The activity of the firm is construction of residential flats, the income is offered under the head Income from Business, and we are not having any income which will fall under Income from Capital Gains. Wherever the cost of flat. sold is more than the Rs.50 lakhs, customers are deducting 1% TDS and depositing the same, as our activity is falling under Income from Business, we are offering income under that head and claiming the TDS amount towards our tax liability... As the firm is identifying turnover under percentage more completion method and TDS is deducted by the purchaser only on the flats costing than 50 akhs. hence the turnover declared in the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s placed on record, the Assessing Officer has passed the assessment order on 24.5.18. Admittedly, the present case is not a case of no query raised by the Assessing Officer or no reply submitted by the assessee. Rather in the present case, the assessee furnished a reply in response to the question raised by the Assessing Officer and had taken a plausible stand explaining the mismatch in Form 26AS and the amount received and also had submitted the year of taxation of the receipts and further had made out a case that the assessee has opted for percentage completion method and therefore, the accounting treatment given by the assessee to the receipts is in accordance with law. The learned PCIT despite the above said material had failed to bring ..... X X X X Extracts X X X X X X X X Extracts X X X X
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