2020 (9) TMI 244

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.... has proposed following questions of law for the consideration of this Court : "(i) "Whether, on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is right in upholding the decision of Ld. CIT(A) deleting the addition of Rs. 3,38,44,000/- made by the AO estimating the income @25%? (ii) Whether, on the facts and in the circumstances of the case and in law, the Hon'ble ITAT is right in deleting the assessee's income as estimated by the AO on the advances received from its customers without appreciating that the assessee has worked as a contractor only and therefore revised provisions of AS-7 would apply for estimation of matching income on proportionate completion method?" 3. It appea....

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....000/- is made to the total income being 25% of the total receipts of Rs. 13,53,76,000/- as business profit of the assessee for the year under consideration. Penalty proceedings u/s 271[1][c] of the I.T. Act are initiated for furnishing inaccurate particulars of income and concealment of income." 7. The CIT (A) while partly allowing the Appeal preferred by the assessee against the assessment order observed as under : "6.2.1. The Grounds of appeal-Ground No.2 pertains to making addition of Rs. 3,38,44,000/- by estimating the income of the assessee firm at 25% on the advance received by the assessee from its customer amounting to Rs. 13,53,76,000/- without appreciating the facts and circumstances of the case in right perspective. T....

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....#39; Enterprise Pvt. Ltd. for a total consideration of Rs. 16,76,50,400/-. In the year under construction a very limited construction work was carried out of Rs. 4,39,20,677/- which included the cost of the land of Rs. 3,44,04,150/-. It was further contended that no sale deed was executed for the property in the relevant assessment year. 6.2.2. On the perusal of the details, it is observed that during the relevant assessment year a very limited construction work was carried out as per the audited accounts work in progress of Rs. 4,39,20,677/- wherein the land cost was Rs. 3,44,04,1.50/- and the construction expenses was Rs. 95,16,527/-. The project was under construction upto 2015-16 wherein the construction expenses in each financ....

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.... Ground Floor 6560 5,29,83,700 15.12.2015 First Floor 6566 4,31,43,300 15.12.2015 Part of Second Floor 5828 2,15,43,000 15.12.2015 Total 18954 11,76,70,000   6.2.4. From the above facts it is evident that the transfer of the legal title was the condition precedent to the buyer. No registered sale deed was executed in the year under consideration and the amount of the total area sold was also reduced from 34720 to 18954 sq, ft. for the total consideration of Rs. 11,76,70,000/- instead of the original amount of Rs. 16,73,50,400/-. The AO has arbitrarily determind the profit @25% of Rs. 13,53,76,000/-without any basis or material in possession. The AO's presumptive profit of Rs. 3,....