Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (5) TMI 527 - ITAT MUMBAIProfit on sale of flats - assessee is a builder into constructing two buildings at Bhayander - whether the A.O. was justified in taxing 15% of payments in respect of 5 flats for which the possession was given by the assessee in the previous year relevant to the assessment year under consideration - assessee submitted that following percentage completion method which stands accepted by the Revenue - Held that:- The amount of work in progress in respect of these five flats at the rate of 31.65% was included in the overall 31.65% of WIP, which the assessee offered for taxation, after deduction of expenses. With the making of separate addition by the AO at the rate of 15% profit on 100% of the amount in respect of these flats, some part of these amounts got doubly included, once, when the assessee voluntarily offered at 31.65% of the total WIP and secondly when the AO brought to tax the profit on 100% in respect of receipts from these flat owners. Since the proceedings for all the years up to A.Y. 2004-2005 have been concluded and in the years following the previous year relevant to the assessment year under consideration, the assessee has followed the same method of accounting by also considering same percentage in respect of these five flats in each of the years, no final reduction can now be done to reduce the income for the subsequent years. It would be just and fair if the percentage of profit from 15% as applied by the A.O. and confirmed in the first appeal is reduced to 10% to set off the effect of double inclusion of the amount in respect of these five flats in this year and subsequent years - appeal of assessee partly allowed.
|