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2012 (10) TMI 173 - AT - Income TaxApplicability of Accounting Standards - revised AS-7 prescribing percentage completion method OR AS-9 which provides for project completion method - assessee is a real estate developer - Held that:- As decided in Awadhesh Builders Versus Income-tax Officer, Ward 15(2)(4), Mumbai [2009 (12) TMI 665 - ITAT MUMBAI] in terms of revised guidelines described in AS-7, the income could be accounted only on completion of the project when the flats were sold. It was observed that since the assessee had followed one of the prescribed methods and the same method had been accepted in the earlier years, the method could not be changed by the AO in the subsequent year - as in the present case the undisputed facts in the case remain that project is completed only upto 16% & also the assessee has option to adopt work completion method( as decided in case supra) the income could not be assessed even with reference to AS-7. Moreover, the other undisputed fact is also not controverted that assessee did not sell any portion of the impugned project and has started earning lease rental from the said project on long term basis. Therefore, keeping in view all these facts, CIT(A) has rightly deleted the addition - against revenue. Interest received on FDR - Held that:- CIT(A) has rightly decided that since the assessee has capitalized all the cost of the project, the interest earned by it from FDR cannot be set off against interest paid - against assessee
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