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TMI Blog2025 (2) TMI 1074X X X X Extracts X X X X X X X X Extracts X X X X ..... t.
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. Therefore, no infirmity in the order of ld. CIT (A) and same is upheld by dismissing the appeal of the Revenue.
The appellate order has already been affirmed by the Tribunal while deciding the assessee's appeal. Consequently, the appeal of the Revenue is dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... te proceedings, the ld. CIT (A) partly allowed the appeal by sustaining the addition to the extent of 41,41,728/- and deleting the addition of ₹ 8,75,21,860/- by observing and holding as under:- "6.2 Ground no. 2, 3 & 4: These pertain to the plea that the AO was not correct in making additions of Rs. 9,16,63,588/- on account of suppressed sales. 6.2.1 During the appeal proceedings, the appellant submitted that it is mainly engaged in the business of construction and development of properties. It was stated that Schedule 19 of audited accounts contains the details of Cost of Construction in Progress which was debited to the Profit and Loss A/c. It was submitted that the same was expense for the appellant-company for the preceding y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of book sales at Rs. 5,14,74,463/- being difference of Closing WIP and sum total of Opening WIP and Sales. In this regard, appellant submitted that the said income of Rs. 2,99,50,000/- related to income from construction activity and not income on account of sales. It was stated that the appellant is engaged in the business of construction and development of properties and earns income from construction activities and the appellant does not sell properties. It was explained that the same is evident from Note 17-Revenue from Operations, of the Audited Accounts, wherein the Sales were reported at Rs. 0 for the current year and also the preceding year and the entire Revenue from Operations relates to 'Income on Construction Activities&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nological Research & Development, though nil cost & nil revenue were offered in FY 2011-12 but in FY 2010- 11, cost was debited at Rs. 1,35,45,400/- while no sales were offered." Vide this office notice dated 31/10/2023, the appellant was asked to explain such discrepancies in its accounts. The appellant was also asked as to why the addition of Rs. 41,41,728/- on account of HCL Nonadanga be not upheld on this account. The appellant was also asked to produce part-wise cost of construction in progress debited in P/L account with corresponding revenue offered from each party in FY 2010- 11 & 2011-12 along with necessary documentary evidences, ledger accounts and full financial statements of FY 2010-11 & 2011-12 with all annexures and notes t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofit of 1.5% had been offered on this property in FY 2010-11. In any case, since no cost had been debited and no sales had been offered in FY 2011- 12, the addition of Rs. 1,12,29,000/- made by the AO on account of this property is hereby deleted. For Onkar Society for Engineering & Technological Research & Development also, neither the revenue nor the cost has been shown in P/L account in FY 2011-12. However, in FY 2010-11, appellant had offered income of Rs. nil while cost debited to P/L account was Rs. 1,35,45,400/- on this property. Thus, no profit had been offered on this property in FY 2010-11. In any case, as the issue of cost debited for this property pertained to FY 2010-11, the addition of Rs. 1,35,45,400/- made by the AO on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Schedule 19 submitted that the said schedule-19 contained the cost of construction in progress which was debited to the profit and loss account and the same is expense for the assessee for the preceding year ending on 31.03.2011 and current year ending on 31.03.2012 and not opening WIP and closing WIP as alleged by the ld. Assessing Officer. The ld. AR submitted that the ld. AO has completely misunderstood the books of accounts maintained by the assessee and came to the conclusion that the assessee has made sales out of the book of accounts. The ld. AR stated that the assessee has not engaged in selling of properties. The ld. AR thereafter referring to note no.17, which is qua 'Revenue from Operations', wherein the sales is reported at &# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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