NISHANT HOUSING DEVELOPMENT P LTD Vs. ASSISTANT COMMISSIONER OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
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V.K. Sinha, Accountant Member -
(1.) THESE are three appeals filed by department for assessment years 1986-87 to 1988-89 and three cross-appeals filed by the department. They are being disposed of by this common order for the sake of convenience.
(2.) The dispute in these appeals relates to additions made by the Assessing Officer under Section 69 of the Income-tax Act, 1961 as unexplained investments in construction of two multi-storeyed buildings called Surya Apartment and Vaibhav Apartment. The construction was carried out between assessment years 1984-85 to 1988-89. A detailed and consolidated finding for the entire period has been given in the assessment order for assessment year 1986-87 and has been followed in two subsequent years.
The assessee is a private limited company and according to the assessment order it had business of construction and sale of multi-storeyed buildings. Profit and loss account and balance sheet have been prepared for all years from regular books of account which have been audited also. The total cost of construction according to the assessee's books was Rs. 84,58,353 for Surya Apartment and Rs. 79,04,406 for Vaibhav Apartment.
(3.) THE Assessing Officer has first given a finding that the cost as per assessee's books should be something else. He has referred to the final bills drawn on M/s Nishant Sahkari Grih Nirman Samiti Ltd., Patna in respect of the two buildings. According to him, the assessee sold the two apartments to the said co-operative society. He analysed the figures in bills and came to conclusion that the net cost of construction for Surya Apartment came to only Rs. 60,48,895 and the net cost of construction for Vaibhav Apartment came to Rs. 75,64,426. THEse figures are relevant since the Assessing Officer worked the unexplained investment not with respect to the cost of construction as per assessee's books but as per these revised figures. THEreafter, he split the year-wise investment as under :
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