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2019 (2) TMI 732 - HC - Income TaxNature of receipt - taxable as profession receipt or business income or security deposit - amount received by the assessee during the year was an advance and the actual remuneration was to be quantified at the completion of the project - whether payment received by the assessee is not in the form of professional fees covered u/s 194J the assessee is acting as a consultant and getting the fees for work? - Held that:- The assessee had earned income out of its engagement, claimed to be as a consultant in development of housing project. AO was of the opinion that the income was assessee's business income. The assessee carried the matter in appeal before the CIT (Appeals), who held that the assessee was acting merely as a consultant and accordingly reversed the decision of the Assessing Officer. The Revenue carried the matter in appeal before the Tribunal. A perusal of the material on record would show that the CIT(A) and the Tribunal on the basis of evidence on record came to the conclusion that the assessee had not engaged in the business of developing real estate. The assessee had engaged itself, may be, as a consultant out of which activity, the assessee would earn commission at predecided rate. The amounts received by the assessee before completion of the project were in the nature of deposits to be adjusted towards alternate payment to be made upon completion of the project. - Decided in favour of assessee.
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