2018 (4) TMI 1952

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....ant appeal. Its first grievance is that the CIT(A) has erred in confirming GP addition of Rs.1,74,945/- @ 28.96% on AUDA and electric connection charges expenses of Rs.6,04,095/- in lower appellate proceedings vide following detailed discussion:- "4.3. I have considered the facts of the case and submission made by the appellant. The AO has made addition of Rs.6,71,481/- being additional G.P. on construction activity. The AO has observed that in the working of work in progress (WIP) of construction account the assessee has not taken all the expenditure having a direct bearing on the WIP to arrive at the value of WIP of Bungalows sold by the assessee to his clients. Out of the total direct expenses of Rs.10,72,396/-, the assessee has consid....

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....e have already reflected as income of the respective years is not verifiable. Therefore, the action of the A.O is correct. In the alternative the appellant has contended that there is a mistake in quantifying the amount of the addition at Rs.6,71,481/-. The appellant has contended that the AO has held that the G.P. @28.96% should also be applied to expenses such as AUDA charges of Rs.4,96,436/- and electric connection charges of Rs. 1,07,5597- aggregating to Rs.6,04,095/-. The appellant has submitted that applying G.P @28.96% on the aggregate amount of Rs.6,04,095/- works out to Rs.1,74,945/- and not Rs.6,71,481/- as quantified by the A.O. The appellant has contended that this mistake have crept in because the AO has included G.P. of Rs.4,9....