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2021 (9) TMI 878 - ITAT DLEHIRevenue recognition - Income from sale of plots - as per AO assessee should have followed the percentage of completion (POC) method instead - HELD THAT:- As decided in own case [2015 (3) TMI 847 - DELHI HIGH COURT] upheld the contention of the assessee that the project completion method followed by the assessee will not result in deferment of tax and there is no justification for the Ld. Assessing Officer to adopt POC method for one year on selective basis.So far as these facts are concerned, they remain un-challenged and un-impeached. Since there are no compelling reasons to deviate from this consistent view taken by the Tribunal and Hon’ble High Court, we are of the considered opinion that the findings of the ld. CIT(A) cannot be found fault with. On this premise, we find the grounds of Revenue’s appeals as bereft of merits and consequently dismiss the same. Interest free advances to the sister concern - disallowance of interest in respect of the investments made by the assessee in the subsidiaries, on which no interest was charged by the assessee - HELD THAT:- It remains an established fact that for the assessment years 2008-09 and 2009-10, as against the interest free funds in the hands of the assessee to the tune of ₹ 104.18 crores and 118.68 coress respectively, the assessee made investments only to the tune of ₹ 37.25 crores and 75.77 crores respectively. It goes without saying that for these two assessment years, the own funds of the assessee are in far excess of the investments made- when the assessee had substantial capital and interest free funds available with it, which far exceed the interest free advances to the sister concern, there is no scope to make any addition, though the assessee was maintaining a bank account with mixed common funds, in which all deposits and withdrawals were made. See Reliance Utilities & Power Limited [2009 (1) TMI 4 - BOMBAY HIGH COURT] - Decided in favour of assessee.
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