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2017 (9) TMI 1022 - ITAT MUMBAIRevision u/s 263 - Claiming deduction u/s 80IB(10) and sec. 80IA(4) - profits related to TDR receipts less cost related thereto in the form of purchase of land, construction of flats etc. - the assessee determined the cost relating to TDR sales on estimated basis and allocated the same against the proceeds of TDR sales, accordingly it computed profit from TDR sales and claimed the same as deduction u/s 80IA(4) as it is the claim of the assessee that it is involved in development of infrastructure facility - Held that:- In the instant case, the Ld Pr. CIT has not, for the reasons discussed in the preceding paragraph, shown that the view taken by the assessing officer was not sustainable in law. On the contrary, the assessee has demonstrated that it was constrained to make additional claim in view of the cancellation of the airport contract and further the said additional claim was not in the form of any additional expenses as presumed by Ld pr. CIT, but in the form of allocation of actual expenses. We have noticed that the assessee had earlier allocated the estimated expenses between the two streams of income, viz., (a) TDR receipts and (b) Commercial space in Airport. After cancellation of airport contract, it had allocated actual expenses against TDR receipts. It is quite common in the case of construction contracts that the income and expenses are disclosed on estimated basis in the initial years. When the whole scenario changed, the Tribunal found merit in the plea of the assessee that the allocation of expenses on the basis of then prevailing conditions should be changed. We have already expressed the view that the claim of the assessee as well as acceptance of the same by the AO cannot be said to be unsustainable in law, if one considers the principle of taxing the real income. Hence we agree with the contentions of the assessee that the view taken by the AO is a possible view, in which case, the impugned revision orders cannot be sustained. Accordingly we set aside the impugned revision orders passed by Ld Pr. CIT. - Decided in favour of assessee.
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