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2019 (5) TMI 414 - AT - Income TaxAddition being 8 % of total Work In Progress(WIP) - projects at the stage of completion and no sale or opening/closing of WIP were shown by the assessee in P & L, A/c. - Incremental WIP including expenditure incurred in previous year - second round of litigation - The whole controversy is that any income on the WIP on construction work carried out by the assessee is chargeable to tax in the impugned assessment year - HELD THAT:- The method of accounting being completed contract method is also consistently followed by the assessee which was permitted by AS-7 issued by ICAI till it was amended in the year 2002. This is second round of litigation and despite that the Revenue is not able to controvert the contentions of the assessee with any cogent incriminating material even before us and only bald statements are made which has no basis whatsoever. We have no material on record to hold that the assessee had any other stream of income apart from these service charges which emanated from construction and development work carried out by the assessee for these two societies and which stood declared in return of income filed with Revenue for AY 2003-04. So far as tribunal observations in its order dated 24.11.2010 in first round of litigation as to verification that the WIP for the impugned AY 2000-01 of ₹ 23.32 crores from the construction of residential buildings of these two societies being carried forward to subsequent years till the work was completed in AY 2003-04 of which income was being offered for taxation by assessee, we have no hesitation in holding that the assessee has sufficiently discharged its onus in proving that it only worked for these two societies since its formation in June 1997 till the construction was completed in previous year 2002-03 relevant to AY 2003-04 and the income earned from the construction work carried out with respect to these societies were ultimately offered for taxation in AY 2003-04 and due taxes paid to Revenue. The detailed reasoning is outlined by us in our conclusions as above in preceding para’s of this order. Now it was for the Revenue to have brought on record cogent incriminating material to disprove and dislodge the contentions of the assessee by making necessary enquiries and investigations which in our considered view, the Revenue failed to bring on record any cogent incriminating material to dislodge contention of the assessee and we have no hesitation in confirming the well reasoned appellate order dated 12.03.2014 passed by CIT(A) - Decided against revenue
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