9911796707
TMI Blog2025 (2) TMI 1074X X X X Extracts X X X X X X X X Extracts X X X X ..... sale by the assessee. 03. The facts in brief are that the assessee filed the return of income on 11.04.2013, declaring total income at Rs. 1,15,920/-. The case of the assessee was selected for scrutiny under Computer Assisted Scrutiny Selection (CASS) and statutory notices along with questionnaire were duly issued and served upon the assessee. The assessee addended the proceeding from time to time and also filed the necessary details/ information called for by the ld. Assessing Officer. The assessee is engaged in the business of contractor ship and was following mercantile system of accounting. The ld. AO during the course of assessment proceedings, noted that during the impugned financial year the assessee has executed certain contractual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relating to construction works of Onkar Society for Engineering and Technological Research and Development for the immediately preceding year ending 31/03/2011 was Rs. 1,35,45,400/- and for the current year ending 31/03/2012 since no cost was incurred in relation to construction works of the said party, the cost as on 31/03/2023 was reported at Rs. 0. It was stated that the AO mistook the cost of construction in progress for the year ending 31/03/2011 as Opening WIP and the cost of construction in progress for the year ending 31/03/2012 as Closing WIP and treated the difference of Rs. 1,35,45,400/- in the opening and closing balance as out of books sales which is illogical. It was explained that similar was the case for Camellia Educare S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not in the nature of Opening WIP and Closing WIP. 6.2.2 Regarding the submissions of the appellant, it is noted that the appellant is not into sales of property as a normal builder does but it is engaged in the business of only the construction of the properties and receives the revenue on this account. The appellant is akin to a contractor who constructs buildings/properties on behalf of the person asking it to construct the properties. Thus, the appellant debits the expenses on construction in the P/L account project-wise under the head 'cost of construction in progress'. This expenditure reflects the cost incurred, during the year, on a given project. Comparison of sales and cost of construction figures for FY 2011-12 & 2010-11 (as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjournment vide its request dated 29/12/2023 which was accepted and vide hearing notice dated 08/01/204, it was asked to file submissions by 11/01/204. In response, appellant filed submissions dated 09/01/2024 wherein earlier submissions 21/12/2022 were reiterated and it was requested that the same may be deemed to be appellant's submissions. In view of the above, it is apparent that the appellant has not offered any sales on HCL Nonadanga property in FY 2011-12 though it had debited this cost at Rs. 41,41,728/- to the P/L account for FY 2011-12 on this account. Thus, the expenses to the extent of Rs. 41,41,728/- had been claimed in excess and the addition made by the AO to this extent was justified. On issues of Kalyan Educational Soc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,75,21,860/-, is hereby deleted. Ground no. 2 to 4 of appeal are partly allowed. 05. The ld. Counsel for the assessee pointed out that the assessee has preferred an appeal against the order passed by the ld. CIT (A) sustaining the addition of Rs. 4141,728/- and the Revenue challenged the deletion of addition to the extent of Rs. 8,75,21,860/-. The ld. AR submitted that the assessee's appeal has already been heard and disposed off by the co-ordinate Bench in ITA No. 341/KOL/2024 vide order dated 30.08.2024, wherein after taking into consideration the finding given by the ld. CIT (A), the remaining addition sustained by the first appellate authority of Rs. 41,41,728/- was also deleted. However, the appeal filed by the Revenue on 28.05.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT (A) has passed a very reasoned and speaking order dealing which each and every aspect of the issue. The ld. AR therefore prayed that the appellate order may kindly be upheld by dismissing the appeal of the Revenue. 06. After hearing the rival contentions and perusing the materials available on record, we find that in this case the ld. AO has passed a very cryptic order and making addition by comparing the opening and closing WIP and then recording a conclusion in two lines that assessee has suppressed sales recorded outside the books of account. We have perused the appellate order in which the ld. CIT (A) has dealt with the receipts from each party for which the assessee executed contracts during the impugned financial year. Theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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