2015 (10) TMI 1402

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....mpleted on December 16, 2009 under section 143(3) of the Act accepting the returned income of Rs. one lakh. The learned Commissioner of Income-tax, on examination of the record, took the view that the assessment order is erroneous and prejudicial to the interests of the Revenue, since the Assessing Officer did not consider the financial statements properly and they show that the assessee had earned a net profit of Rs. 46,57,144 during the year under consideration on execution of contract. Accordingly he set aside the assessment order with the directions to the Assessing Officer to examine the issue in detail. The assessee is aggrieved by the order of the learned Commissioner of Income-tax. 3. The assessee is an unincorporated joint venture....

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.... 46,57,144   The learned authorised representative submitted that the learned Commissioner of Income-tax has wrongly presumed that the abovesaid liability payable to the sub-contractors (customer) represents profit of the assessee. He then invited our attention to the profit and loss account furnished at page 17 of the paper book and submitted that the assessee had incurred contract expenses to the tune of Rs. 46.08 crores during the year under consideration. The assessee had also incurred other administrative expenses to the tune of Rs. 1.51 crores. The aggregate amount of both expenses have been taken as closing work-in-progress and hence no profit was arrived at in the profit and loss account. 5. The learned authorised represent....