TMI Blog2017 (11) TMI 1997X X X X Extracts X X X X X X X X Extracts X X X X ..... tile system of accounting u/s 145 and that no accounting standards has so far been notified u/s 145(2) of the Act in regard to developers and builders - CIT-A deleted the addition made by the AO on account of profit earned by the assessee during the accounting year under consideration - HELD THAT:- The co-ordinate Bench has already decided the said issue in favour of the assessee in assessee s own case for the assessment year 2011-12 [ 2016 (12) TMI 1538 - ITAT MUMBAI] by following the decision rendered in CIT vs. Bilahari Investment (P) Ltd. [ 2008 (2) TMI 23 - SUPREME COURT] , CIT vs. Manish Build Well Private Limited [ 2011 (11) TMI 35 - DELHI HIGH COURT] and decision of co-ordinate Bench in Avadhesh Builder [ 2009 (12) TMI 665 - ITAT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it on the project should not be taxed on percentage completion method and also asked to submit the justification as to why the interest received as credit in P L account should not be added to the total income. In response thereof the AR submitted that the assessee has been following project completion method for recognizing the revenue wherein cost of land, construction and other expenses incurred every year is added and carried forward as work in progress and advances received from the customers are shown in the liability side in the balance sheet. The income of the project will be offered in the year of completion of the project. 3. The AO rejecting the explanation of the assessee determined the profit earned by the assessee during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee submitted that the Mumbai Tribunal has decided the identical issue in favour of the assessee in assessee s own case ITA No 6178/Mum/2014 for the assessment year 2011-12. Since, the issue raised by the revenue in the present case is covered by the decision of the Tribunal is assessee s favour there is no merit in the department s appeal and the same is liable to be dismissed. 6. We have heard the rival submissions and perused the material on record including the cases relied by the authorities below. The only grievance of the revenue is that the Ld. CIT(A) has wrongly deleted the addition made by the AO on account of profit earned by the assessee during the accounting year under consideration. As pointed out by the Ld. Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re inclined to accept the appellate order of the Ld. CIT (A) subject to verification by the A.O. that the entire profits earned by the assessee from this project Quantum Tower in totality has been offered for taxation and due taxes on this project were duly paid to Revenue as contended by the assessee, albeit in the succeeding years by following project completion method ,(including, inter-alia, profit earned on sales of Rs. 42.10 crores as well on closing stock of Rs. 29.50 crores) for which the assessee is directed to produce relevant evidence before the AO to substantiate that entire income from this project in totality has suffered tax and no prejudice is cause to the Revenue. In view of our detailed discussion and reasoning as deta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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