https://www.taxtmi.com/caselaws?id=449775 The ITAT Ahmedabad rejected the assessee's claim to apply net profit method on unaccounted on-money received from plot sales. The assessee company developed residential plots in two phases and argued that only 8% profit element should be taxed on the on-money, not the entire amount. The tribunal held that unlike manufacturing activities, net profit estimation is impossible in land development transactions involving agricultural to non-agricultural conversion due to unaccounted expenses. The assessee failed to provide proper expense details despite opportunities. The tribunal distinguished cited case laws as not relating to plot development and decided against the assessee. en-us Fri, 09 Feb 2024 00:00:00 +0530 Wed, 21 Feb 2024 05:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449775 The ITAT Ahmedabad rejected the assessee's claim to apply net profit method on unaccounted on-money received from plot sales. The assessee company developed residential plots in two phases and argued that only 8% profit element should be taxed on the on-money, not the entire amount. The tribunal held that unlike manufacturing activities, net profit estimation is impossible in land development transactions involving agricultural to non-agricultural conversion due to unaccounted expenses. The assessee failed to provide proper expense details despite opportunities. The tribunal distinguished cited case laws as not relating to plot development and decided against the assessee. Case-Laws Income Tax Fri, 09 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449775