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2020 (9) TMI 184 - AT - Income TaxOpening work-in-progress - business loss on demolished project - AO was of the opinion that the opening work-in-progress was a capital loss as the assessee has demolished the constructed property - HELD THAT:- Assessee’s case is that there has been court cases and amendments in the rules and plans which have led to the change in plan and consequent amendment and demolition of certain aspects of the project. But the assessee’s contention is that assessee is still continuing with the project and the expenditure in this regard has to be treated as work-in-progress in as much as assessee is following project completion method Matter needs to be remitted to the file of AO as directed to consider the veracity of assessee’s submission with reference to the relevant evidences. If the assessee’s submissions regarding the change in rules and other aspects are found to be cogent, then the assessee’s claim of work-in-progress and the assessee’s following of project completion method have to be examined on the touchstone of Hon'ble Delhi High Court decision in the case of Lunar Electrical [2012 (4) TMI 51 - DELHI HIGH COURT] - Remit the issue to the file of Assessing Officer - Assessee appeal allowed for statistical purposes
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