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2012 (6) TMI 440 - AT - Income TaxAddition on account of sale of TDR - slum rehabilitation project. - AO observed that TDR was nothing but FSI granted by SRA which could be used by recipient for construction of flats /premises in Mumbai. – Held that:- approach adopted by the Assessing Officer for assessing the income from TDR independently without deducting the expenses incurred is not justified. - The assessee has been following project completion method which is an accepted method of accounting in construction business and also recommended as per accounting standard AS-7 of ICAI. Therefore, in such cases the income from the project has to be computed in the year of completion. The TDRs received are directly linked to the execution of the project and therefore, before the completion of the project the income from TDR or any other receipt inextricably linked to the project will only go to reduce costs of the project. order of CIT (A) deleting the addition confirmed. - appeal of the revenue for the Assessment Year 2006-07 is dismissed
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