2019 (12) TMI 681

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....jurisdiction u/s.263 of the Act in the facts and circumstances of the case. 3. The brief facts of this issue are that the assessee is an individual and he is a builder and developer. The return of income for the A.Y.2015-16 was electronically filed by the assessee on 01/10/2015 declaring total income of Rs. 1,54,96,400/-. The assessment was completed by the ld. AO u/s.143(3) of the Act on 30/06/2017 determining the total income of the assessment at Rs. 1,59,20,900/-. Later this assessment was sought to be revised by the ld. Pr. CIT u/s.263 of the Act on the ground that the learned Assessing Officer failed to conduct appropriate enquiries and had not examined the valuation of closing stock of properties with respect to the cost incurred b....

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....ght to the notice of the ld. Pr. CIT that in respect of projects in Vrindavan Residency and Vrindavan Valley, the value reflected above were the same values as were considered in the opening balance and hence, there cannot be any further costs that could be attributed to the said projects thereon. 3.3. In respect of Vrindavan Shristi Project, the sum of Rs. 1,06,50,000/- was incurred towards road usage charges during the A.Y. 2015-16 and since this project is yet to be started, the actual amount spent is reflected in work in progress i.e in closing stock as on 31/03/2015. 3.4. In respect of Vrindavan Palms Project, the assessee submitted before the ld. Pr.CIT that construction was carried out in Kalyan catering to the needs of low income....

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....Act. The assessee has not maintained separate books of accounts for each project. b. The assessee has considered only the direct cost for valuing the closing stock. Since the assessee being the builder, there is no concept of any direct and indirect cost and that all the costs incurred would fall under direct cost except some administrative and general expenses. The project wise bifurcation of expenses by the assessee were also not produced by the assessee. c. Certain general and administrative expenses incurred by the assessee would be common across all the projects and hence, it takes the character of direct cost and accordingly need to be included in the valuation of closing stock thereon. 4.1. With these observations, the ld. P....

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.... case for the A.Y.2014-15 u/s.143(3) of the Act dated 30/11/2016, similar valuation method adopted by the assessee had been accepted by the ld. AO and no addition thereon was made. Revenue was not able to bring on record any evidences that the assessment for A.Y.2014-15 were subsequently subjected to any reopening u/s 147 of the Act or revision proceedings u/s.263 of the Act. Hence, it could be safely concluded that the ld. AO while framing the assessment for the A.Y.2015-16 had merely adopted the same valuation method accepted by his predecessor for A.Y.2014-15 in assessee's own case. Hence, there cannot be any error on the part of the ld. AO in framing a possible view thereon. In any case, we would like to hold that the assessee had furni....