2017 (10) TMI 1528

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.... facts of the case in deleting the addition of Rs. 200000000/- made by the Assessing officer on account of undisclosed sale. 2. That the Commissioner of Income Tax (Appeals) erred in law and on facts in deleting the disallowance of expenses of Rs. 3826000/- made by the Assessing Officer on account of inadmissible expenses. 3 (a) The order of the CIT(A) is erroneous and not tenable in law and on facts." 3. The assessee is a company engaged in the business of real estate and has undertaken two project "Veritas" at Gurgagaon and City Emporio" at Chandigarh. The construction activities in collaboration with M/s. Pegasus Buildtech Pvt. Ltd at Gurgaon. The assessee filed its return of income on 24.10.2008 for Rs. 252695707/-.....

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....of the Act was made on 30.12.2010 at Rs. 456521707/- against returned income of Rs. 252695707/- . 5. On appeal before the ld CIT(A) the addition was deleted for the reason that Assessing Officer has made addition due to non furnishing of details by the assessee. It was further held that the addition cannot be made on the basis of imaginary figures. Further with respect to disallowance of expenditure the ld CIT(A) noted that appellant has failed to deliver the possession of the property and therefore the appellant has paid compensation to NAI Collaborators India. As the appellant company is engaged in the business of real estate the compensation so paid is revenue expenditure. 6. Revenue aggrieved with the order of the ld CIT(A) has pr....

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....estment ITA NO. 3109/Mum/2011 order dated 31.12.2013 c. Accord Properties ITa No. 741/Pn/2012 order dated 30.04.2014 9. We have carefully considered the rival contentions and also perused the orders of the lower authorities. The assessee is carrying on two projects and during the course of survey and search proceedings it was found that in both the projects assessee is collecting "on money" towards the sale of space. In both the projects the accounted portion is undisputedly 58% of the total sale price. Therefore, during the assessment proceedings the ld Assessing Officer asked the details of total area constructed along with the list of bookings made till 31.03.2008 and till 30.12.2010 i.e. the date of passing of the order whic....

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....arbitrary method of calculation. Therefore, even the Assessing Officer is not justified in assuming the impugned figure of cash sale out of the books. In view of this we set aside the whole issue of this addition covered in ground No. 1 of the appeal of the Revenue back to the file of the Assessing Officer with the direction to the assessee to submit the details called for by the Assessing Officer about the total salable area of the project and the persons who have booked the space. The Assessing Officer is directed to verify the result of 133(6) enquiries made by him earlier and to verify about the fact of confirmation by the parties who have booked such spaces. The AO may examine the details  which assessee is directed to submit. Aft....