Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 1155 - ITAT HYDERABADIncome recognition - Addition towards profits/gains earned on transfer of land pertaining to villas as sold - Year of assessment - Assessee argued that entire amount of sale consideration was not disclosed in the turnover, but it reported turnover of only Rs. 2.91 crores - HELD THAT:- As we are of the considered opinion that factual verification as to how much of sale consideration that was received during the financial year 2012-13 is necessary. Apart from this, from the sale deeds, the copies of which are found in the paper book filed before us clearly reveal that the construction activity on relevant plots had not reached even the lintels level. Observations of AO that the entire construction work was over and vacant possession of the villas was handed over to the respective buyers is, therefore, factually incorrect. When the sale deeds were available to the AO it is evident from the photos appended to the sale deeds that the construction work is at preliminary level, AO could have verified this fact from the field. It is, therefore, incorrect to conclude that the project work was complete or that the assessee should recognize the entire revenue. Thus we deem it just and necessary to quash the orders of the authorities below and restore the issue to the file of AO to cause enquiry as to the sale consideration that was received during the relevant assessment year and also whether the percentage on recognition of revenue was in-consonance with the percentage of completion of the project as on 31/03/2013. AO will decide the issue as per facts and law, after giving due opportunity of being heard to the assessee.
|