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2015 (10) TMI 307 - AT - Income TaxMethod of accounting - income recognition - Addition made on estimation basis by AO on construction of housing projects - assessee a company is engaged in the business of real estate development and construction - Held that:- Identical estimation of profit relating to Bit-III Housing Project in the preceding AY 2008-09 came up for consideration before the ITAT [2014 (1) TMI 1182 - ITAT HYDERABAD ] as held once the assessee recognised the income in accordance with the supplementary agreements, the CIT(A) cannot substitute his assessment to say that the assessee has postponed the tax liability. The CIT(A) observed that there is no basic deviation in the method followed by the assessee regarding recognising of income. However, he observed in the same breath that there is basic flaw in the method followed by the assessee to have threshold limit of 30% as the said threshold limit can be differed by various means. When there is no deviation in recognising the income by the assessee, the CIT(A) cannot recompute the profit of the assessee by observing that there is basic flaw in the method followed by the assessee to have threshold limit of 30% as the said threshold limit can be differed by various means, which is unwarranted. Accordingly, the findings of the CIT(A) are vacated and the grounds raised by the assessee are allowed.- Decided in favour of assessee. Disallowance u/s 40(a)(ia) - AO noticing that assessee has not remitted the TDS amount within the due date - Held that:- There is no dispute to the fact that assessee has remitted the TDS amount before the due date of return for the impugned assessment year as provided u/s 139(1) of the Act. The Hon'ble Calcutta High Court in case of M/s Virgin Creations (2011 (11) TMI 348 - CALCUTTA HIGH COURT ) interpreting the provisions of section 40(a)(ia) has held that if TDS amount is remitted to the Govt. account prior to the due date of return, u/s 139(1), there will be no disallowance u/s 40(a)(ia) as first proviso to section 40(a)(ia) brought to the statute by Finance Act, 2010 will apply retrospectively. Thus as first proviso to section 40(a)(ia) being retrospective in operation, if the TDS amount is remitted prior to the due date of return u/s 139(1), no disallowance is to be made u/s 40(a)(ia) of the Act. - Decided in favour of assessee.
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