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2017 (11) TMI 1997 - AT - Income TaxCorrect method of accounting - whether profit on the project should not be taxed on percentage completion method? -AO following percentage completion method as against the project completion method adopted by the assessee - AR submitted that the assessee has been following project completion method for recognizing the revenue wherein cost of land, construction and other expenses incurred every year is added and carried forward as work in progress and advances received from the customers are shown in the liability side in the balance sheet - AR held that post amendment every assessee has to follow either cash or mercantile system of accounting u/s 145 and that no accounting standards has so far been notified u/s 145(2) of the Act in regard to developers and builders - CIT-A deleted the addition made by the AO on account of profit earned by the assessee during the accounting year under consideration - HELD THAT:- The co-ordinate Bench has already decided the said issue in favour of the assessee in assessee’s own case for the assessment year 2011-12 [2016 (12) TMI 1538 - ITAT MUMBAI] by following the decision rendered in CIT vs. Bilahari Investment (P) Ltd. [2008 (2) TMI 23 - SUPREME COURT] , CIT vs. Manish Build Well Private Limited [2011 (11) TMI 35 - DELHI HIGH COURT] and decision of co-ordinate Bench in Avadhesh Builder [2009 (12) TMI 665 - ITAT MUMBAI]. - Decided against revenue.
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