TMI Blog2020 (9) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 - ITA NO. 1003/MUM/2019 - - - Dated:- 16-7-2020 - Shri Shamim Yahya, Accountant Member And Shri Pawan Singh, Judicial Member For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... started construction project at Borivali (W) for which IOD was granted by BMC on 11.11.2003 and CC was granted in part by BMC at various times. Plan for the construction of the building consisting of Ground Floor plus 5 upper floors was submitted but approval for CC was received by the assessee firm from BMC in part from time to time. Mean time, a stay was issued by the Bombay High Court in PIL in 2004 in which the assessee firm was also one of the parties. Copy of the same has already been submitted to you. Bombay High Court has liefted stay around late 2006/early 2007. The assessee firm has amended plan incorporating slum first floor on 21.07.2008. On the basis of which, the assessee firm has purchased TDR and paid FSI Premium charges app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed parking norms. As advised suggested by the Architect, full basement having an area of 14000 sq. ft. was necessary to be constructed so as to take care of additional stipulated parking given to buyer of the flats be constructed. The assessee firm hereby submits to you that the project was not abandoned by the firm as stated in the notice issued to us, but it was replaned/redesigned the project to comply with the revised D.C. regulation including to accommodate parking. It was necessary to construct basement and also to follow revised rules unless the existing construction was demolished the planning was not possible. It was also pointed out be Architect that the revised rules also allows higher F.S.I. which would compensate for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order, the learned CIT(A) distinguished the decision of Hon'ble Delhi High Court relied upon by the assessee for the proposition that in project completion method all the expenditure incurred till the completion of the project are to be taken into account. The decision was in the case of Lunar Electrical vs ACIT, 210 taxmann 69. 5. Against this order, assessee is in appeal before us. We have heard both the Counsel and perused the records. We find that it is settled law that substance prevails over form. In our considered opinion, the detailed note of the assessee to the Assessing Officer has not been properly appreciated by the authorities below. The entire detailed note has been summarily rejected by the Assessing Officer by inferr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtunity of being heard. 7. Before parting, we note that this appeal was heard on 06.02.2020. The pronouncement is delayed due to lockdown in view of Covid-19 pandemic. The pronouncement is as per Rule 34(5) of Appellate Tribunal Rules and Hon'ble Bombay High Court decision vide order dated 15.04.2020 extending the time bound periods specified by Hon'ble High Court by removing the period under lockdown. This aspect is also dealt with in detail in ITAT Mumbai order in case of DCIT vs JSW Steel vide order dated 15.05.2020. 8. In the result, appeal by the assessee stands allowed for statistical purposes. Order pronounced in the court on 16th July, 2020 as per Rule 34(4) by placing the pronouncement list on notice board. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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