TaxTMI 
TaxTMI 
2025 (12) TMI 743
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....ort of which a condonation petition was filed. It was stated in the condonation petition that the delay has occurred due to time taken in obtaining the administrative approvals from the competent authorities, which took quite a long time and accordingly, the delay being beyond the control may be condoned. The ld. AR, on the other hand, did not oppose the condonation of delay. Considering the reasons cited before us, we are inclined to condone the delay and admit the appeal for hearing. 3. The first issue raised by the Revenue is against the deletion of addition of Rs. 3,96,94,221/- by the learned CIT (A) as made by the learned AO in respect of closing stock calculated under Percentage Completion Method by the learned AO. 3.1. The fact....
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....er:- "3. Addition on the basis of turnover adopted by the appellant in PERCENTAGE COMPLETION METHOD has been made by the AO of Rs. 3,96,94,221/-. The AO has applied PERCENTAGE COMPLETION METHOD for determining the turnover to be recognized by the appellant in his profit and loss account on the basis of books of accounts and submissions made by the appellant at the time of scrutiny. The AO has given detailed calculations, in which he has pointed out the difference in actual turnover recognized by the appellant in his profit and loss accounts as against the turnover which should have been recognized on the basis of principles of PERCENTAGE COMPLETION METHOD. The AR of the appellant has submitted following facts: 1. As the re....
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.... IN PROGRESS, which shall be carried forward. 3. Even though the payment in respect of area sold, might not be received in proportion to the work completed on project, the revenue on such area, shall be recognized on the percentage completion basis on accrual basis. 4. The accounting entries at S.NO:03 & 04. shall upheld the MATCHING CONCEPT and also the REAL INCOME theory. 5. No part of the revenue shall escape over the whole period of the project, as the progressive revenue recognitions over year aggregated together shall match the total REVENUE available from the completed project envisaged. I have gone through the assessment order as well as appellant submission I find that there is no disagreement be....
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....ers from apparent error and as such difference is factually not correct. I therefore delete the addition of Rs. 3,96,94,221/-." 3.4. After hearing the rival contentions and perusing the materials available on record, we find that the learned CIT (A) has recorded a finding that there was no difference between the learned AO and the appellant with regard to Percentage Completion stage,salable area, booked area, percentage of booked area as compared to total salable area, percentage of book area as compared to salable area and cost of construction. The learned CIT (A) noted that the difference has arisen in the chargeable value of the same recognized by the appellant in the Profit and Loss account as per Percentage Completion Method vis-&ag....
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....rlier assessment years and therefore, the sale value in the year in which the agreements were executed were to be taken. The learned CIT (A) accordingly deleted the addition by observing and holding as under:- "1. I have gone through the assessment order and the submission of the AR. The addition on account of difference in MVR has been done by the AO on the basis of criteria of u/s. 43CA of difference in the agreement/sale value of the property and the Municipal value given in the agreement for stamp duty purpose. The AO has compared the agreement value of the flats sold by the assessee with the stamp duty value and determined a difference of Rs. 40,97,800/- which is the basis of addition. I have gone through the order of the AO a....