TaxTMI 
TaxTMI 
2025 (5) TMI 1790
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....sment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year 2017-18. 2. Brief facts of the case the assessee is a Private Limited Company and owner of land at Asarva, Ahmedabad. The land was given for development to M/s. Jas Infra Space Private Limited as a Developer and constructed shops and offices on the said land under a development agreement. The constructed shops and offices were sold jointly, with Sale Deeds executed by the assessee and Developer as confirming party. The sale consideration was appropriated between the assessee and M/s. Jas Infra Space Pvt Ltd. i.e. Developer. The closing stock for the assessee was of land only. 2.1. For the Asst. Yea....
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..... 3 That the Ld. National Faceless Appeal Centre) has erred in law and facts by not deleting the addition of Rs. 2,88,49,653/- made by the learned Assessing officer, on account of low Gross Profit for the year under consideration and therefore, your Honor is requested to direct the ld.AO to delete the addition in full, while computing the total income. 4 That your appellant craves a leave to add, alter or amend any grounds at or before the time of hearing. 5. At the outset Ld Counsel Shri Prakash D Shah appearing for the assessee submitted that the assessee is NOT pressing Ground No.1 namely wrong issuance of notice u/s. 143(2) of the Act, recording the same Ground No.1 is dismissed. 6. Regarding merits of the case t....
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....ich was inclusive of interest cost. The valuation of closing stock was filed before the Assessing Officer at page no 66 with letter no.6. The same is as under: CLOSING STOCK AS ON 31.03.2017 Total cost incurred till date including interest cost till 31.03.2017 1,53,98,72,205 Total units sold till 31.03.2017 886 Sales Price of units sold 160,56,68,400 Total sales price estimated 267,42,86,500 % of sales price of units sold 60.1 % of unit in stock 39.9 Total value of stock 614409009.8 (39.96*1539872205/100) Say, 614411278 6.4. Thus, the as....
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....osing stock filed with the A.O. is very clear and its shows total expenditure incurred including interest up to 31.03.2017. 6.6. It was expected that the sales of whole project of all the shops and offices will be made within 2 to 3 years. However, sales could not be achieved at a faster rate. This has caused interest cost to the company which has increased the cost of valuation of land. The assessee further submits that the books of accounts are accepted by Assessing Officer and no defect in the books of account is found out by the AO. No comparable case is given by AO while making estimation, therefore there is no justification of estimation of gross profit and addition thereof. 6.7. The Ld. Counsel further submitted that gross prof....
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....and Section 44AB of the Income Tax Act. * The assessee has maintained a consistent method of valuation, including capitalization of interest into cost of land, which is corroborated by its submissions and valuation working filed during assessment. * The business model is unique - the assessee is a landowner and not a developer. Thus, expecting unit-wise inventory details is misplaced, as land does not undergo typical trading or manufacturing transformation. 8.1. We find neither specific or material defect in the books of account nor any instance of sales suppression or unrecorded transactions. Further there is no purchase of new land by the assessee. Thus the Assessing Officer is not correct in rejecting the books of ac....