9911796707
TMI Blog2023 (1) TMI 360X X X X Extracts X X X X X X X X Extracts X X X X ..... s taken the following grounds: "1. That the Ld. CIT(A) has erred in not confirming the cash receipt of Rs.2,23,71,700/- against booking of flats in this year of receipt and in holding that all receipts will be subject to tax when the basic parameter of percentage of completion is fulfilled. 2. That the Ld. CIT(A) has erred in ruling that Percentage Completion Method is applicable on all receipts of the assessee without appreciating the fact that PCM cannot be applicable to the undisclosed cash receipts as the same has never been brought into the books. 3. That the Ld. CIT(A) has erred in allowing the ground of the assessee regarding addition of Rs.2,23,71,700/- on account of cash receipt against booking of space while directing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore or during the course of the hearing of the appeal." 3. The assessee's grounds of appeal are as under:- "1. That the said case in law and in the facts, on both, the learned CIT(A) has grossly erred in rejecting Grounds of the appellant's appeal before him challenging the validity of the assessment order passed u/s. 147/143(3) of the Income-tax Act, 1961. 2. That the said case in law and in the facts, on both, the learned CIT(A) has grossly erred in rejecting Grounds of the appellant's appeal before him and strategically confirmed the assessee has received Rs.2,23,71,700/- unaccounted money against Nehru Vikas Minar Project'. However as allowed to assessee for these receipt on percentage Competition method/Project Competition met ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2014 which according to Ld. AO was duly served. In response thereto, the assessee filed nil return. Notice under section 142(1) along with questionnaire was issued on 20.10.2014 which too was served. 5. During the assessment proceedings written and oral submissions were made. The Ld. AO confronted the assessee and vide show-cause-notice dated 30.01.2015 required the assessee to explain as to why cash receipt of Rs.2,23,71,000 be not treated as unaccounted income of the assessee and added back to its income. 6. In response thereto, the assessee submitted that xls sheet is not corroborative evidence in which amount mentioned is a hypothetical figure; it is undated and unsigned details. It is not taken to relevancy. xls sheet is just a dump ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the course of hearing before me. From the record we find that the said case the appellant is engaged in real estate business, in a real estate business for revenue recognition a guidance note has been issued by "The Institute of Chartered Accountants of the India" Where it is stated that:- The seller has transferred to the buyer all significant risks and rewards of ownership and the seller retains no effective control of the real estate's transferred to a degree usually associated with ownership. I. At the time of transfer of all significant risks and rewards of ownership it is not unreasonable to expect ultimate collective and. II. No significant uncertainty exists regarding the amount of the consideration that will be derived ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received by the appellant doesn't show the nature of income, it is mainly nature of advances and will be taxable when the basic parameter of PCM will be fulfilled. The AO is directed that revenue of the assessee will be recognized as method adopted by the assessee for revenue recognition. In the result the ground of the appeal is allowed." 9. The Revenue as also the assessee are aggrieved. Both have come up in appeal before the Tribunal. 10. The hearing was last fixed for 25.08.2022 but none attended for the assessee. The Ld. Sr. DR was present. He was heard. The hearing was again fixed for 02.12.2022, but the assessee remained unrepresented. We, therefore, proceeded to decide the appeals, after hearing the Learned DR. 11. The Ld. DR s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion Method (PCM) has been applied or assessment has been made on the basis of Project Completion Method. We are, therefore, of the view that it would be appropriate if the issue of the impugned addition is restored back to the file of the Ld. AO to carry out necessary investigation as to the receipt of the alleged cash by the assessee and arrive at the conclusion afresh in the light of the material gathered. Accordingly, we set aside the order of the Ld.CIT(A) on this issue and direct the Ld. AO to make reassessment afresh keeping in view the above directions. 13. In the result, the appeal of the Revenue is treated as allowed for statistical purposes. 14. As regards, the appeal of the assessee, its ground no.1 relates to the validity of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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