2023 (10) TMI 1137

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....der of the Assessing Officer (in short ld. 'AO'). 3. The facts in brief are that the assessee is engaged in the business of contractors and builders and during the year has received advances against sale of flats which have been shown under the head unsecured loans and advances from the parties. The AO in order to verify the said advances issued notice u/s 133(6) of the Act to selected parties and accordingly the replies received from these parties were compared with the books of accounts of the assessee. However, in some cases, the letter issued u/s 133(6) of the Act to 15 parties out of which 7 notices were returned unserved. Accordingly, the AO held that the advances from these parties were not proved. Accordingly, the AO adde....

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....tances, we are not in the position to sustain the order of Ld. CIT(A) and accordingly we set aside the same and direct the AO to delete the addition of Rs. 14.71 Lakh. Therefore, ground no. 1 raised by the assessee is allowed. 6. The issue raised in ground no. 2 is against the confirmation of addition of Rs. 16,75,860/- by Ld. CIT(A) as made by the AO on estimated basis by adding 25% of the total project expenses claimed by the assessee. 7. The facts in brief are that the assessee has claimed Rs. 67,03,440/- as project expenses in the profit and loss account and after capitalising the proportionate expenses to the flat work-in-progress which were shown at Rs. 1,19,32,434.17 and the net profit was calculated at Rs. 59,832/-. For the sa....