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2010 (4) TMI 853 - AT - Income TaxWhether CIT(A) erred in directing the A.O. to workout the profit on the additional amount of Rs.77,25,300/- received during the year only as against entire advances without appreciating the facts brought out by the A.O. on the record by invoking provisions of sec. 145A that no income is assessed in the earlier years on the advances or work completed - assessee is a builder - Assessing Officer noticed that the assessee did not offer any income from the said project even though 94% of the total completion level was attained in this year. He thus proceeded to bring to tax, on estimate basis @ 12% of the receipts as income from the project – Held that:- taxability cannot be confined to the receipts of that year alone as there may or may not be revenue receipts in that year. The profits are to be ascertained in respect of the work that is completed and to the extent it is completed, in the year of such completion. provided the threshold of substantial completion” is achieved. Revenue’s appeal is allowed
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