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2024 (3) TMI 617 - AT - Income TaxAddition on account of revenue recognition following percentage of completion method (POCM) - as per AO assessee had incurred substantial expenses on construction but the revenue had not been recognized on the basis of percentage of completion method - AO considered the total saleable construction cost up to 31.03.2014 as 58.49% and accordingly, held that revenue was required to be recognized on the basis of POCM - CIT(A) deleted addition - HELD THAT:- t none of the aforesaid factual observations made by the ld CIT(A) were controverted by the revenue by bringing in contrary materials before us. Further, we find the rate of tax in AY 2014-15 and 2015-16 remains the same. It is a fact that the assessee had indeed started offering income from the project under POCM commencing from AY 2015-16 onwards which is evident from table reproduced supra. Hence, the entire exercise of the revenue in trying to shift the year of taxability to the year under consideration is purely academic in nature. See Gee Industrial Enterprises [2015 (8) TMI 181 - PUNJAB & HARYANA HIGH COURT] which comes to the rescue of the assessee. This decision has duly considered the decision in the case of Dinesh Kumar Goel [2010 (10) TMI 287 - DELHI HIGH COURT] and Excel Industries Ltd [2013 (10) TMI 324 - SUPREME COURT]- Thus no infirmity in the order of the CIT(A) and accordingly, ground 1 raised by the revenue is dismissed. Disallowance u/s 14A of the Act where there is no exempt income - HELD THAT:- This issue is no longer res integra in view of the recent decision of PCIT Vs. Era Infrastructure Ltd [2022 (7) TMI 1093 - DELHI HIGH COURT] wherein, it was held categorically that if there is no exempt income earned by the assessee, disallowance u/s 14A of the Act cannot be pressed into service. Respectfully following the same, ground No. 2 raised by the revenue is dismissed.
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