TMI Blog2010 (9) TMI 1270X X X X Extracts X X X X X X X X Extracts X X X X ..... ch of four appeals by the Revenue arises out of the common order passed by the Commissioner of Income-tax (Appeals) on 31.03.2009 in relation to the assessment years 2004-2005 to 2007-2008. 2. The only ground raised in assessment year 2004-2005 is against the deletion of addition of ₹ 24,44,68,480 on account of TDRs taxed on receipt basis. Similar issue is raised in the remaining appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient for construction of flat / premises in Mumbai. In this backdrop of facts it was held that the value of TDRs was liable to be added to the total income on the basis of sale consideration. He, therefore, made addition accordingly in all the years in question. The learned CIT(A) came to hold that the A.O. was not justified in rejecting the method of accounting followed by the assessee being the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mercantile system of accounting and the project completion method has been approved by the ld. CIT(A) as well. The Mumbai Bench of the Tribunal in Chembur Trading Corporation (supra) vide its order dated 21.01.2009 has held that when the assessee is following project completion method, sale proceeds of TDRs should be included in the year in which the project is completed. Similar view has been ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct to the availability of other deductions, as per law. The learned A.R. has stated at Bar that the assessee voluntarily included such amount in the income for the assessment year 20082009, assessment of which is still in progress and the assessment order has not yet been passed. We, therefore, hold that the amount of sale of TDRs in the years in question should not be taxed but the same be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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