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2011 (5) TMI 647 - ITAT, MUMBAICompletion of the project method of declaring profits - return of income the assessee showed work-in-progress relating to is the project. The assessee had also received advances in respect of the project - AO noticed that neither in this year nor in the assessment years 2005-06 and 2007-08 had the assessee declared any profit from the said project - AO said that buyer has made full payment of the price of the flat, the assessee is bound to declare the profit on the sale of the flat notwithstanding that possession was not handed over to the buyer - Assesse contended that assessee is following the project completion method, In accordance with the method adopted by the assessee, he has shown the profit from the said project - completion certificate was submitted on 24-4-2006, which date falls within the year ended 3 1-3-2007 - all cases possession has been handed over after 3 1-3-2006, mostly in the months of May - Hence assesse claim was accepted - Thus appeal is allowed.
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