TaxTMI 
TaxTMI 
2014 (5) TMI 479
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....er of the dispute in the instant case concerns the correct quantum of income at which the assessee is to be in law and the facts of the case assessed for the relevant year. It may be relevant to recount the background facts of the case. The assessee-company, in construction business, was subject to survey u/s.133A of the Act on 08.10.2007. The assessee was during the said year engaged in SRA (Slum Rehabilitation Authority) project by the name 'Pooja Enclave', at Vile Parle (W), Mumbai, besides another under construction. As at the date of survey, while Wing A of the Pooja Enclave project stood completed, Wing B thereof was complete up to 80%. The Director of the company (Shri Ishwar Dialani) declared the estimated income on the said project....
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....counts, viz.: a) Opening WIP for the year, i.e., as on 31.03.2007; b) total saleable area; and c) average cost of production. The Assessing Officer (A.O.), as claimed by him, having accepted the errors inflicting the assessment, vide his remand report dated 13.09.2011, the ld. CIT(A) allowed the assessee's appeal, holding as under: '4.3 The Assessing Officer has submitted his remand report dated 13.09.2011, which has been forwarded through Addl. CIT dated 19.09.2011. The three errors pointed out by the appellant viz., i. Opening work-in-progress as on 31.03.2007. ii. Total saleable area iii. Average cost of construction The above errors have been fairly accepted by the Assessing Officer in the remand proceedings by way of speaking ....
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....t for a part of the year or a truncated period thereof, that could be subject to tax as the income for the relevant assessment year, and which therefore has to be for the full year. At this stage, it would be relevant to state the Revenue's grievance as projected per its grounds. The same read as under: '1. On the facts and in the circumstances of the case and in law, whether the ld. CIT(A) is correct in allowing the appeal of the assessee by accepting the income returned by it at Rs.2,47,78,750/- whereas the returned income as per order u/s.143(3) of I. T. Act is Rs.2,83,75,357/- after considering the revised figure of cost of construction per sq. ft. based on remand report. 2. The appellant prays that the order of the CIT(A) on the grou....
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.... profit as determined and accepted at the time of survey (Rs.424.35 lacs), being itself much higher than that returned for the entire year. In fact, we observe that he did not even take cognizance of the difference of Rs. 2.35 lacs (Rs. 247.79 lacs - Rs. 245.44 lacs) in the income returned and the profit declared on the 'Pooja Enclave' project. The same (i.e., the income as assessed) was, thus, only a best estimate of the income for the year in the absence of any assistance rendered or evidence/s being led by the assessee. It, however, doing so in the appellate proceedings, the assessing authority, on the matter being remanded to him, accepted the mistakes in the working of the profit as made at the time of survey, since adopted for the pur....
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....equentially no case for the deletion of the entire addition as made in assessment; there being no finding qua the income for the second half of the year, more particularly considering that the construction cost had crystallized, and which would therefore obtain for the second half of the year as well, during which there has been economic activity by way of sales. This, in fact, would become much more apparent and striking in view of the glaring and vast unexplained differences between the results obtaining for the two parts, i.e., the pre and post survey periods of the relevant previous year, which we tabulate as under (on the basis of the undisputed figures on record): Sr. No. Particulars/Period P1 P2 Total a) Sales (Rs. in lacs) 701.35 ....