Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 133 - AT - Income TaxOn-money received by the assessee over and above amounts stated in the regular books of accounts - Held that:- On account of any reason project could not be completed, then the assessee would be required to refund the money, and in that situation, on-money would also be refunded. Thus, the right to receive or retain this component was subject to the execution of the sale deed or handing over of the possession. This aspect has been clarified by the partners even while admitting the income. The ld.AO has been unnecessarily ignoring that part of the statement. It is also pertinent to observe that the title in the property would be transferred not in the year in which the assessee received part consideration as earnest money, but it is to be construed in the year, when the sales was registered or possession was handed over to the prospective buyers. As decided in Shivalik Buildwell [2012 (10) TMI 1019 - GUJARAT HIGH COURT] as per the accounting standard available, the assessee was entitled to claim the entire income on completion of the project and if such accounting standard was accepted by the revenue in the earlier years, in the present year, the Assessing Officer could not have taken a different stand and that too, without hearing the assessee Apart from the above, the ld.CIT(A) has deleted the addition on the ground that same amount cannot be taxed twice because this very amount has been offered for taxation in different years and the same rate of tax is applicable upon the assessee. Thus, taking into consideration well reasoned finding of the ld.CIT(A) extracted (supra), we do not see any reasons to interfere in it. Appeal of the Revenue is devoid of any merit, hence dismissed.
|