TaxTMI 
TaxTMI 
2025 (6) TMI 2005
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....cts and in the circumstances of the case and in law, the learned CIT (A) erred in confirming the Order passed by the learned DCIT which, is illegal, bad in law, ultra virus and contrary to the provisions of the law and facts, since the order of the learned DCIT is passed without giving proper opportunity to the assessee of hearing and explaining the case. 3. On the facts and in the circumstances of the case and in law, the learned CIT (A) erred in confirming the Order passed by the learned DCIT. The same is bad in law as proper service of the notices was not made to the assessee, the same is in violation of the principles of natural justice on various issues as stated herein. 4. On the facts and in the circumstances of the case and in law, the learned CIT (A) erred in confirming the additions of Rs. 5,09,65,000/-on account of provision for unexpected losses and/or closing calculation of WIP, without affording proper opportunity of being heard to the assessee. 5. On the facts and in the circumstances of the case and in law, the Order passed by the learned CIT (A) is illegal, bad in law, ultra virus and contrary to the provisions of the law and facts, and t....
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....ear, assessee had reversed the provision and fresh provision was made. Based on this accounting practice, ld. AO concluded that the provision is contingent in nature. He thus, arrived at reasons to believe that income to the extent of Rs. 5,09,65,000/- has escaped assessment for AY 2012-13 within the meaning of section 147. Accordingly, notice u/s.148 of the Act, was issued dated 06.03.2017. 4.1 In the course of reassessment proceeding, Ld. AO issued show cause notice asking the assessee to rebut the observation and finding noted in reasons to believe recorded for the purpose of reopening, corroborating by documentary evidences. In this respect he noted as under: "3. On verification of the case records, it is found that you have deducted an amount of Rs. 5,09,65,000/- from the closing work in progress on account of provision for expected loss in a project. Please refer to note-15 of the balance sheet. From perusal of records, it is noticed that provision made for expected loss is actually not incurred and not added to the income in the statement of total income during the year under consideration. In the "statement of Significant Accounting Policies" under the head "Val....
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....counting of construction contract wherein percentage completion method is mandated. As per this accounting standard, entity is required to carry out evaluation of all on going contract in year under consideration and ascertain if any contract has incurred losses which is to be provided in the books of accounts. In compliance to the said requirement, assessee carried out the exercise and provided for expected loss in terms of AS-7. After considering the submissions made by the assessee, Ld. CIT(A) did not agree with the same and dismissed the appeal by sustaining the disallowance made by Ld.AO. Aggrieved, assessee is in appeal before the Tribunal. 7. Before us, Ld. Counsel for the assessee raised the legal contention to challenge the validity of reopening of the case on the issue which has already been dealt with in the course of regular assessment proceedings u/s.143(3) of the Act, tantamounting to change of opinion with no new tangible material brought on record. According to him, the reassessment proceedings and impugned reassessment order are bad in law, liable to be quashed ab initio. For this, ld. Counsel for the assessee referred to copy of order sheet entries obtained und....
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....rther invited to the following in support of our contention that in spite of this loss, in work unbilled, the profit earned has ranged at almost same percentage as compared with immediate past year; Particulars Year ended on 31/03/2012 Year ended on 31/03/2-11 Assessment Year 2012-2013 2011-12 Turnover in Rupees 108,23,09,000 121,20,65,000 Profit before all exceptional items 18,49,82,000 20,52,40,000 % of above profit to turn over 17.08% 16.93% It is irrationally hope that the explanation will be in order 7.2. Ld. Counsel also referred to the audited financial statement for the year under consideration to demonstrate that all the require disclosures were made in respect of the disallowance made by the Ld. AO while completing the reassessment proceedings u/s.147 of the Act. According to him, there is nothing new on record in tangible form which has been brought by the Ld. AO though the same has already been considered and accepted in the original assessment completed u/s. 143(3) of the Act. It was also asserted that the impugned reassessment has been reopened based on the additions made in the subsequent AY 2013-14 which is al....