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TMI Blog2019 (11) TMI 1037X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee we find that the gross profit of the assessee comes to 6.45% on the assessee s business for the year under consideration. Therefore, authorities below should apply the GP rate on the impugned amount @6.45%. Accordingly, we restrict the addition estimating @6.45% on the value of closing stock(WIP) as shown by the assessee in his profit and loss account. Hence, the profit on the closing stock of ₹ 1,88,08,700/- estimated @15% by the CIT(A) without any basis, is restricted to 6.45% and the profit is directed to be taxed in the impugned assessment year on the closing stock at ₹ 12,13,161/-. In regard to the contention of ld. AR that the assessee will get benefit of opening work-in-progress in the next year, it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellant, the net taxable profit ratio to sales was 1.04%. On the basis of this the taxable profit on stock, if treated as sale shall be ₹ 1,95,610 4. That again once this is taxed this year, the assessee shall claim refund in subsequent year, when the said stock has actually been sold in the AY 2016-17 and AY 2017-18. 5. That above all there was actually stock valued at cost amounting to ₹ 1,88,08,700/- as on 31.03.2015 as per certificate of architect. 6. That the appellant begs to urge further grounds to be raised at the time of hearing. 3. Brief facts of the case are that the assessee derives income from construction and sale of flat and filed return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - on the valuation of closing stock. 5. Further feeling aggrieved by the order of CIT(A), the assessee is in appeal before the Income Tax Appellate Tribunal. 6. Ld. AR before us filed paper book which is placed on record containing written submission of material fact, balance sheet as on 31.03.2015 and copy of tax audit report for A.Y.2015-2016 and submitted that both the authorities below are not justified and the entire value of closing stock should not be added and no any receiving has been recognized from the closing stock as shown in the profit and loss account. He also submitted that once it is added in the impugned year, the assessee will get benefit in the subsequent year as opening work-in-progress. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed opinion, the assessee should have been obtained the valuation report from any technical persons/architects for valuing of the closing stock(WIP) and accordingly he should have been disclosed in his profit and loss account. It is undisputed that the assessee has taken advance from customers i.e. the final sale value has not been recognized. We also notice from the order of AO that the assessee did not cooperate during the course of assessment proceedings for substantiating the valuation of closing stock(WIP) as shown in the profit and loss account. Further as per the profit and loss account filed before us by the assessee at paper book page no.6, we find that the gross profit of the assessee comes to 6.45% on the assessee s business for t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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