SHREYANS BUILDERS Vs. JOINT CIT

JUDGEMENT

(1.) HEARD the learned counsel appearing for the petitioner and the learned counsel appearing for the respondents.

(2.) IT has been stated that the petitioner is a partnership firm carrying on real estate business. The petitioner firm is assessed on the file of the first respondent herein, under PAN No.AAZFS1507K. For the assessment year 2009-2010, the petitioner firm had filed its return of income, on 30.9.2009, admitting a total income of Rs.1,17,11,560/-. The return was processed, under Section 143(1) of the Income Tax Act, 1961. Subsequently, the case had been selected for scrutiny and a notice, under Section 143(2) of the Income Tax Act, 1961, had been served on 3.9.2010.

(3.) THE balance construction had been completed in the following years and the income thereon had been included in the returns of the subsequent years. Thereafter, the petitioner had included the same for assessment, during the assessment year 2010-2011, accounting for 96% of the work. The appropriate tax had also been paid. However, the first respondent had held that, since the petitioner had incurred costs to the extent of 91% of the contract, it ought to have considered 91% as the extent of completion of construction and not as 84%. Hence, the first respondent made an addition of 7% of the total sales amounting to Rs.4,28,34,813/-. The first respondent had also made an addition of Rs.75,900/-, being the interest received by the petitioner, which had not been reflected in the return.