9911796707
TMI Blog2017 (8) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... s have been completed and the risks were transferred, the Assessing Officer estimated the income on the gross receipts accumulated till the end of the financial year 2009-10. From the commencement of the project till the assessment year 2010-11 and subsequent year, the assessee filed nil return and no income was admitted. The assessee has not submitted the details relating to completion of project and admission of income relating to the above projects. In the absence of books of account, the correctness of the expenditure could not be established. Therefore, only option available to the Assessing Officer is to estimate the income and complete the assessment. The assessee has not admitted any income in the earlier years and no evidence has shown regarding the admission of income in the subsequent years and the Assessing Officer held that the substantial risks have been transferred in the year under consideration. Therefore, we do not find any error in the lower authorities orders and we confirm the order of the learned Commissioner of Income-tax (Appeals) and dismissed the grounds of appeal. - I. T. A. Nos. 511 and 512/Mds/2016 - - - Dated:- 12-4-2017 - N. R. S. Ganesan (Judicial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erence to such standards would fall on the grounds. 7. The Commissioner of Income-tax (Appeals) failed to appreciate that the method of accounting as well as reckoning of revenue under the project completion method should be considered as acceptable and ought to have appreciated that the change of course for the purpose of making addition on the estimated basis was erroneous and wholly unjustified. 8. The Commissioner of Income-tax (Appeals) went wrong in record ing the findings in this regard in paragraphs 8 to 23 of the impugned order without assigning proper reasons and justified. 9. The Commissioner of Income-tax (Appeals) failed to appreciate that the decisions relied upon were applied out of context and not applicable to the factual matrix of the case thereby vitiating the decision to sustain the wrong assessment framed by the original authority and ought to have appreciated that the entire computation of assessable income was wrong, erroneous, unjustified, incorrect and not sustainable in law. 10. The Commissioner of Income-tax (Appeals) failed to appreciate that there was no proper opportunity given before passing of the impugned order and any order pass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cent. of the project income for Mistral . According to the Assessing Officer, in case, the assessee is following Accounting Standard 7 having completed 76 per cent. and 74 per cent. of the projects, the assessee should have estimated the income on the percentage completion basis and admitted the resultant income. If the assessee is following Accounting Standard 9, the assessee should have admitted the value of flats sold as income. In the assessee's case, though the assessee claimed to have followed the project completion method, the books of account and the supporting evidences were not produced to establish the expenditure and the method of accounting. The information furnished before the Assessing Officer do not throw clear picture regarding the method followed by the assessee in the absence of books of account. Therefore, the Assessing Officer rejected the books of account and estimated the income at the rate of 8 per cent. on the gross receipts received by the assessee till the end of the year 2010 and estimated the income at the rate of 8 per cent. on gross receipts of ₹ 53,51,61,122 which worked out ₹ 4,45,65,113. For the assessment year 2010-11, the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting trading results. Though the assessee claimed to have followed the project completion method, it is obligatory on the part of the assessee to maintain the regular books of account and support the contentions with the books of account, bills and vouchers and prove the method followed by it and establish the true and correct financial position. The expenditure debited to the work-in-progress/advance received required to be accounted correctly to show that no inflation of expenditure and no suppression of income was made by the assessee. The assessee has not produced the books of account, bills and vouchers. In the absence of the books of account, bills and vouchers the contention of the assessee that it was following project completion method and maintaining regular books of account is without any basis. Further, the assessee has not furnished any evidence to show that in the subsequent years the project was completed and the return was filed for the assessment year 2007-08 to 2010-11 the assessee filed the nil returns. It is noticed from the learned Commissioner of Income-tax (Appeals) orders that, the assessee has not filed the returns for the assessment year 2014-15 and 2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
