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The Commissioner of Income Tax-15, Mumbai Versus M/s Sai Shraddha Construction

2016 (2) TMI 304 - BOMBAY HIGH COURT

Accepted method of accounting - assessment on Best Judgment basis - Held that:- As project completion method is one of the accepted method of accounting and the same was regularly followed by the respondent-assessee in computing it's taxable income. It is for the assessee to choose the method of accounting and employ it regularly. It is not the case of the revenue that the project completion method of accounting is not regularly employed by the assessee. As held by the two authorities, the Asses .....

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e Assessing Officer to discard the project completion method adopted by the respondent-assessee. - Income Tax Appeal No. 1920, 1900 of 2013 - Dated:- 18-1-2016 - M. S. Sanklecha And B. P. Colabawalla, JJ. For the Petitioner : Mr. A. R. Malhotra a/w Mr. N. A. Kazi For the Respondent : Mr. S. C. Tiwari a/w Ms Rutuja Pawar ORDER P. C. These Appeals by the Revenue under Section 260-A of the Income Tax Act(Act) challenges the common order dated 21st November, 2012 passed by the Income Tax Appellate T .....

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king into consideration the clinching evidence gathered by the survey team which had found that there are many residential units in the building admeasuring more than stipulated limit of 1000 sq.ft. after including the exclusive terrace? (B): Whether on the facts and in the circumstance of the case and in law, the Tribunal was justified in upholding the order of the CIT(A) regarding project completion method? 3. So far as Question No.(A) is concerned, we find that identical questions had been ra .....

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t ? 4. This Court, by an order dated 24th April, 2015 did not entertain the Revenue's above Appeal of M/s Raviraj Kothari Punjabi Associates(supra) on the aforesaid question and inter alia observed as under:- "We find that issues in the present case and five questions proposed as essential questions revolve around eligibility to claim benefit of section 80IB(10). Since the project is admittedly approved prior to 1.4.2005 the assessee is covered in the case of the Commissioner of Income .....

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re of the view that Mr.Gupta's submission apropos assessment year 2005-06 will make no difference since the provisions of section 80IB(14)(a) will not affect the present project having been sanctioned prior to 1.4.2005. In the present case it is seen that the approval of the project was granted on 16th July,2002 well before introduction of the provisions of clause (d) which came into effect from 1.4.2005. 11. In the circumstances and in the facts of the present appeals these issues are cover .....

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13 (CIT V/s. M/s Prime Properties), while dismissing the Revenue's Appeal on 27th July, 2015 would cover the Question(A) in favour of the assessee. In the above view, Question No.(A) as framed does not give rise to any substantial question of law. Thus, not entertained. 6. Regarding Question(B):- (a) The respondent-assessee is a builder and developer. In the subject assessment year, it filed it's return of income on the basis of having adopted the Project Completion Method of accounting. .....

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nil return by respondent-assessee. (b) In appeal, the CIT(A) allowed the appeal of the respondent-assessee and held that stand of Assessing Officer determining profit at 8% on the basis of percentage completion method of accounting cannot be accepted. The CIT(A) held that the method of accounting regularly employed by the respondentassessee was project completion method and no defect in the books of account maintained by the respondent-assessee has been pointed out. Thus, the order of the Assess .....

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