Dhaval Housing, AY 2017-18

Parties Involved

Facts Summary

Dhaval Housing, a builder and developer, undertook a project of constructing buildings on plots of land at Village Vannai, Malad West, Mumbai, for residential purposes. The assessee followed the percentage of completion method for accounting profits. The Assessing Officer estimated income at 8% of sales without rejecting the books of accounts, leading to a difference in the value of closing stock/work in progress (WIP). The assessee appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, which sustained the addition made by the Assessing Officer.…

Legal Issues

• 1. Estimation of income @ 8% of sales without rejecting the books of accounts
• 2. Difference in the value of closing stock/work in progress (WIP)

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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