TMI Blog2016 (3) TMI 1418X X X X Extracts X X X X X X X X Extracts X X X X ..... ipt through cheques and receipt through cash as on-money will arise as income to the assessee as soon as transfer of immovable property is executed and not before, or possession thereof is handed over and for this it is necessary that such immovable property should be in existence. Therefore, the Coordinate Bench in the case of M/s. D.R. Construction [ 2011 (4) TMI 1343 - ITAT AHMEDABAD] was of the considered view that on-money received by the assessee did not have the character of income but was only an advance like the one received through cheque. Both will become part of the sale consideration to the assessee simultaneously on either handling over the possession of the flats or on execution of transfer-deed whichever happens earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer. [3] It is, therefore, prayed that the order of the CIT(A) may be setaside and that of Assessing Officer may be restored to the above extent. 2. Briefly stated facts are that a survey action u/s.133A of the Income Tax Act,1961 (hereinafter referred to as the Act ) was carried out on 13/03/2008 at the business premises of the assessee. During the course of survey, the assessee disclosed amount of ₹ 3 crores as unaccounted income. Subsequently, the case was picked up for scrutiny assessment and the assessment u/s.143(3) of the Income Tax Act,1961 (hereinafter referred to as the Act ) was framed vide order dated 22/11/2010. While framing the assessment, the AO by following the order of the CIT(A)-II, Surat No.CAS/II/390/2009- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding expenses account and transferring it to work-in-progress account as done by the assessee. The AO rejected the contention of the assessee for the reason that the income of ₹ 3-crores disclosed during the survey should not be taxed because the project of the assessee was not complete as also not acceptable on the ground that the assessee did not file any evidence to show that the income disclosed during survey was generated from the projects which were under construction. However, the ld.CIT(A) in his order has given a finding on fact that the disclosure of income was made by the partners of the assessee-firm during the course of survey at the business premises of the assessee. This disclosure is the only basis of such income. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered view that on-money received by the assessee did not have the character of income but was only an advance like the one received through cheque. Both will become part of the sale consideration to the assessee simultaneously on either handling over the possession of the flats or on execution of transfer-deed whichever happens earlier. In the instant case, during the course of survey, the partners of the assessee-firm had stated that the amounts so disclosed was the business receipts. The Revenue has not brought on record any contrary material to controvert such statement. Therefore, we do not see any reason to interfere with the order of the ld.CIT(A), same is hereby upheld. Grounds raised by the Revenue in this appeal are rejected. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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