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TMI Blog2017 (9) TMI 1933X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case, the Ld. CIT(A) erred in considering the undisclosed cash receipts of Rs. 2,07,75,000/- should be assessed in AY 2014-2015 instead of 2011-12 in spite of the fact that sale agreements were registered in FY 2010-12. 2. On the facts and in the circumstances of the case, Ld. CIT(A) failed to appreciate that assessee is following accrual based accounting and it should have accounted the undisclosed cash receipt in its books of accounts for FY 2010-11. 3. The appellant prays that the order of the CIT(A) on the above grounds be reversed and that of the Assessing Officer be restored. 3. Briefly stated, the facts of the case are that the assessee M/s ISA Enterprises (ISAE) filed its return of income for the AY 2011-12 on 30.09.2011 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... my regular income amounting to Rs. 10,06,81,388/- (Rupees ten crores six lakhs eighty-one thousand three hundred and eighty-eight only) to tax for AY 2014-15 Sl No. Description Amount 1. Cash received on sale of flat as explained in answer to 4 Rs. 8,11,02,500 2. Difference in market value and agreement value in respect of flat 504 Rs. 34,07,888 3. Estimated profit in respect of project Royal Palace on 28 flats sold till dated Rs. 1,61,71,000 Total Rs. 10,06,81,388 The taxes on the above income will be paid by me as per the following schedule and I am submitting post dated cheques as part of my commitment to pay the taxes on the above income. The tax effect on the income declared comes to around Rs. 3.40 crores and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of method of accounting regularly followed by the assessee i.e. the project completion method, (v) the assessee claims to have offered the said income to tax in AY 2014-15 following the project completion method. In view of the aforesaid reasons, the Ld. CIT(A) deleted the addition of Rs. 2,07,75,000/-. However, the Ld. CIT(A) has directed the AO to ensure that the unaccounted cash of Rs. 2,07,75,000/- forms part of the assessed income of AY 2014-15. Thus the appeal of the assessee for the impugned assessment year was allowed by the Ld. CIT(A). 5. Before us, the Ld. DR submits that the AO has rightly assessed the undisclosed cash receipts of Rs. 2,07,75,000/- in AY 2011-12 since the agreements pertaining to those receipts were registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome has been accepted without any variation by ACIT-20(1), Mumbai in the assessment dated 28.12.2016 completed u/s 143(3) of the Act. Now it would be apposite to discuss the cited two decisions. In the case of M/s Jalaram Jagruti Development Pvt. Ltd. (supra), the issue before the Hon'ble Bombay High Court was the following: "Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal in law, was right in holding that receipts of Rs. 3,46,250/- recorded in the documents seized during the course of search were reflected in the books of accounts and could be taxed only in the year in which the project was completed?" The Hon'ble High Court held that: "The finding of fact recorded by the Tribunal is that the receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disputed in the present proceedings has been offered to tax on the basis of the project completion method during the assessment year 2009-10 and the same has been accepted by the revenue. In these circumstances, we see no reason to entertain the proposed question of law as the entire exercise would be academic. In the above view, the questions (a) to (c) as proposed cannot be entertained." 8. We have mentioned earlier that the return of income for A.Y. 2014-15 filed by the assessee declaring total income of Rs. 4,45,00,710/- has been accepted by the ACIT-20(1), Mumbai u/s 143(3) of the Act. Therefore, we follow the decisions of the Hon'ble Bombay High Court mentioned at para 7 here-in-above and uphold the order of the Ld. CIT(A). 9. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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