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2015 (4) TMI 440 - AT - Income TaxAddition made applying percentage of completion method - Held that:- No infirmity in the order of the CIT(Appeals) on the fact that the assessee has consistently followed the same method of accounting of income in all the earlier years as well as the succeeding years, has not been disputed by the Revenue. Thus the facts remains that the assessee has always been accounting for the sale proceeds of the portions sold by it as income in the year when the possession is given and the registered sale deeds are executed. This method of accounting of income stands accepted in the hands of the assessee u/s 143(3) in the earlier as well as succeeding years. On these facts the A.O. is not justified in adopting the percentage completion method for one year (the year under appeal) only on selective basis. Infact this will distort computation of the true profits and gains of the business. Further same income will be assessed again in the hands of the assessee in the year when sales have been declared in the subsequent years and assessments have been framed u/s 143(3) of the Act which is not tenable in law. - Decided against revenue. Unaccounted sales proceeds received in cash - CIT(A) deleted the addition holding neither the A.O. was justified in adopting the sales consideration on the basis of circle rate prescribed for charging of stamp duty nor was he justified in considering the taxability of transactions relating to office / residential flats against which only advances had been received during the year and actual sale had not been made - Held that:- CIT(Appeals) has given a finding that the value adopted for the purpose of charging the stamp duty cannot be taken into consideration for assessing the business income in relation to the area sold by the assessee and therefore the A.O. was not justified in adopting the circle rate for the purpose of estimating the income. Even before us, the Revenue has not been able to bring any such material on record on the basis of which it could be said that the assessee has actually received any amount of sales proceeds over and above the amount declared by it in the registered sale deeds and its books of accounts and therefore we do not find any infirmity in the order of the learned CIT(Appeals) in deleting the addition of ₹ 1,46,25,071/-. - Decided against revenue.
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