2023 (2) TMI 526

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.... expense. The confirmation of disallowance at Rs. 3,20,000/- is arbitrary, unjust, uncalled-for, and highly excessive. 2. That under the facts and circumstances of the case, the Ld. CIT (A) has erred to calculate value of stock of total land at cost, whereas the same ought to be on saleable area of land in stock plus development expenses. Addition of Rs. 10,25,844/- is therefore arbitrary, unjust, uncalled for and highly excessive. 3. That under the facts and circumstances of the case, the Ld. Lower Authority has erred to estimate the closing stock of business at Rs. 45,25,844/- as against disclosed by assessee at Rs. 35,00,000/- and by AO at 43,50,571/-. The enhancement & confirmation of addition of Rs. 10,25,844/- is the....

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....- in respect of addition made on account of difference between the closing stock as disclosed in the original assessment year. In respect of the addition of Rs.8,71,753/-, the addition was restricted to the extent of Rs.7,21,826/-. However, the addition of Rs.3,20,000/- was sustained. Thus, Ld.CIT(A) partly allowed the appeal of the assessee. 6. Aggrieved against the order of Ld.CIT(A), the assessee is in appeal before this Tribunal. 7. Apropos to Ground No. 1 raised by the assessee is against the sustaining of addition of Rs.3,20,000/- in respect of disallowance of development expenses. 8. Ld.Sr.DR supported the orders of the authorities below and submitted that before Ld.CIT(A), the assessee could not produce the supporting evide....

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.... taken is that since the AO is willing to accept 80% of such expenses so why he could not accept the balance 20%. To my mind the argument of the LD. AR is not acceptable, he ought to have backed the Valuation report with proper supporting evidence. It is in the absence of such evidence that the AO was forced to make an estimated disallowance. There is no material before me produced by the Ld. AR to intervene in the matter except the arguments, I therefore find no reason to interfere and hereby confirm the Addition of Rs.3,20,000/-." 10. Undisputedly, the Assessing Authority has made the impugned addition on the basis of estimation. Coupled with the fact that the Valuation Report was not supported by the relevant evidences. The assessee h....