TaxTMI 
TaxTMI 
2021 (3) TMI 923
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.... erroneous and prejudicial to the interest of revenue. 2. The learned Pr. CIT ought not to have treated order passed u/s. 143(3) as erroneous or prejudicial to the interest of revenue. 3. The order passed u/s. 263 is bad in law. 2. We have carefully heard the rival submissions and perused relevant material on record including submissions made by the assessee during the course of assessment proceedings as well as during revisional proceedings. The various judicial precedents as cited during the course of hearing have duly been deliberated upon by us. Our adjudication to the subject matter of appeal would be as given in succeeding paragraphs. 3. The material facts are that the assessee being resident LLP was assessed for the year under ....
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....nly 4.25% during the year. The condition that construction cost should not be less than 25% of estimated cost to recognize the revenue was not met. Similarly, the condition that 25% saleable project area is to be secured by contracts/agreements were also not fulfilled since percentage of area booked by the assessee was less than 18% during the year. Regarding charging of interest on partner's capital balances, the attention was drawn to the fact that the assessee recovered interest of 12% from partners for A.Ys. 2014-15 to 2017-18 and suo-moto reduced closing WIP in A.Y. 2017-18 and therefore, ultimately there would be no impact on assessee's profitability. 4.3. However, the aforesaid pleas were rejected in the light of the observa....
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....st & finances expenses were also submitted. In submission dated 30/11/2016, a note on business activity with detail of project under implementation and commencement certificate was filed. It was submitted that interest on capital was not charged as per partnership deed. It was reiterated that no sales were made during the year. In notice dated 30/11/2016, the assessee was directed to file details of total saleable area, built up area and super built up area. The percentage of work completed in each year from the commencement of project was also called for. The assessee was directed to furnish a certificate from Architect regarding percentage completed backed by detailed working. In response thereto vide submissions dated 05/12/2016, the a....
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....ound to be satisfactory, no further information was called from the assessee which is also evident from the fact that the returned loss has been accepted by taking note of the fact that the project was in preliminary stage and the assessee has not sold any flat during the year under consideration but received mere advances. In view of the foregoing, it could be concluded that the view of Ld. AO, could not be said to be contrary to law, in any manner, on both the issues as alleged by Ld. Pr. CIT. There was proper application of mind by Ld. AO on both the issues. 7. Another pertinent fact to be noted is that notional interest on overdrawn capital for A.Ys. 2014-15 to 2017-18 has already been reduced by the assessee from financial expenses in....