TaxTMI 
TaxTMI 
2025 (2) TMI 1923
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....peal, the assessee has raised the following grounds: - "1. On the facts and in the circumstances of the case the learned Commissioner of Income tax (Appeal), National Faceless Appeal Centre, Delhi, erred in not considering the ground that the learned Assessing Officer erred in reconstructing the Trading Account and determining the net profit of Rs. 98,19,345/- without considering the cost of land and TDR being stock in trade of the appellant. 2. On the facts and in the circumstances of the case the said learned Commissioner of Income tax (Appeal), National Faceless Appeal Centre, Delhi, has also erred in determining the net profit of Rs. 98,19,345/- by treating sale at Rs. 5,54,86,465/- as per agreement for sale without ap....
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....tion 142(1) of the Act were issued and served on the assessee. During the scrutiny assessment proceedings, the assessee produced books of accounts and financial statements such as cash book, Ledger account, Journal, etc., which were checked on random basis. Upon perusal of the audit report, it was observed that the assessee follows the Project Completion Method. The assessee also submitted the comments and certificate in completion certificate from the Kalyan Development and Municipal Corporation ("KDMC") for the project. After perusal of the details filed by the assessee, the assessee was requested to explain the following points: - (a) The KDMC issued a completion certificate on 13/04/2010 and possession of the flats was also giv....
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....ould be taken on an actual basis instead of a hypothetical cost. The assessee submitted that it is following the Project Completion Method and has filed its return of income on the basis of books of accounts maintained up to the assessment year 2014-15. It was further submitted that the project was actually completed in the assessment year 2015-16, therefore it is improper to treat the project as completed in the year under consideration. The Assessing Officer ("AO") vide order dated 31/03/2015 passed under section 143(3) of the Act disagreed with the submissions of the assessee and computed the net profit at INR 98,19,345 after considering the sale of INR 5,54,86,465 as per the agreements. The AO also made disallowance under section 40A(3)....
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....deration of INR 5,54,86,465 was received by the assessee till the assessment year 2015-16 and therefore, the lower authorities erred in considering the aforesaid sales till the assessment year under consideration for computation of net profit. Further, the learned AR referred to the consolidated profit and loss account as per the books of account of the assessee from 2004 to 2015 and submitted that after considering the sales as per the agreements till 2015 amounting to INR 5,54,86,465 and other costs incurred by the assessee, the net profit of the assessee is only INR 81,702. Thus, having considered the submissions of both sides and perused the material available on record, we are of the considered view that only the sales completed till t....