Tribunal upholds profit addition in housing project appeal due to lack of diligence by assessee The Tribunal dismissed the appeal due to the ex-parte disposal as the assessee failed to appear, showing a lack of diligence. The addition of profit from ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tribunal upholds profit addition in housing project appeal due to lack of diligence by assessee
The Tribunal dismissed the appeal due to the ex-parte disposal as the assessee failed to appear, showing a lack of diligence. The addition of profit from the sale of flats in a housing project was upheld, as discrepancies were found in the details provided by the assessee, and evidence from the housing society and flat purchasers supported the addition. The inclusion of loans and advances in the profit was confirmed by the Commissioner (Appeals) and the Assessing Officer. The Tribunal's decision was pronounced on 20.06.2018.
Issues: 1. Ex-parte disposal of appeal due to non-appearance of the assessee. 2. Addition of profit from the sale of flats in a housing project. 3. Inclusion of loans and advances in the profit from the sale of flats.
Ex-parte Disposal of Appeal: The appeal was disposed of ex-parte as the assessee failed to appear despite notice and no application for adjournment was made. The history of seeking adjournments or absence indicated lack of diligence. The Tribunal proceeded to hear the Departmental Representative and based its decision on the material on record.
Addition of Profit from Sale of Flats: The dispute revolved around the addition of Rs. 2,63,05,675 as profit from the sale of flats in a housing project. The Assessing Officer found discrepancies in the details provided by the assessee regarding sales of flats. Upon investigation, it was revealed that the buildings were completed, flats were sold, and advances received were treated as sale consideration. The Commissioner (Appeals) upheld the addition based on evidence from the housing society and flat purchasers.
Inclusion of Loans and Advances in Profit: The assessee contested the inclusion of loans and advances in the profit from the sale of flats. The Tribunal noted that the amounts in question were verified by the Commissioner (Appeals) and the Assessing Officer, confirming them as part of the profit earned. The claim regarding a loan offered as income in a subsequent assessment year was advised to be addressed separately.
The Tribunal dismissed the appeal, upholding the decisions regarding the profit from the sale of flats and the treatment of loans and advances. The order was pronounced on 20.06.2018.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
