Aadi Procon Private Limited Vs ITO
Parties Involved
Facts Summary
The assessee, Aadi Procon Private Limited, had filed its return of income for the Assessment Year 2016-17, declaring a total income of Rs. 12,52,520/-. The case was selected for limited scrutiny under CASS to examine the sales turnover and income disclosed. The assessee had developed a commercial building project Ratna High Street and obtained BU permission from Ahmedabad Municipal Corporation. The assessee followed the project completion method and accounted for profit only for units sold during the year. The Assessing Officer (AO) found a substantial variance in the square feet selling rate of the properties. The AO initially proposed to apply the highest rate prevailing on each floor to the entire area sold on that floor, resulting in a total sale consideration of Rs. 23,83,94,502/-, which had resulted in a difference in sales of Rs. 6,49,35,802/-. The assessee explained the variance in rates due to various factors, but the AO rejected the books of accounts and estimated the income from sale of units on a reasonable basis.…
Decision in favour of
Assessee
Legal Issues
- 1. Whether the Assessing Officer was justified in rejecting the sale consideration recorded by the assessee and estimating higher sale consideration.
Judgment Outcome
Decided in favour of Assessee.