Development agreements require legal possession or effective enjoyment for capital gains transfer; permissive possession and deferred consideration de...
Prolonged sterilisation of development rights supports capital-gains treatment, while business-income disallowances cannot govern capital-gains comput...
Additional evidence in transfer pricing dispute leads to fresh examination, while tax deductions, TDS credit, fee and refund interest require verifica...
Category II AIF pass-through taxation preserves non-business income character; investment receipts cannot be reclassified without applying recognised ...
The Income Tax Appellate Tribunal (ITAT) held that retention money should be included in contract receipts for computing deduction u/s 80-IA for profits from construction activities. Section 43CB, effective from April 1, 2017, clearly provides that for percentage completion method, project completion method or straight-line method, contract revenue shall include retention money. The retention money cannot have different characteristics than the principal contract amount, as both are part of revenue received for construction activities eligible for Section 80-IA deduction. The ITAT relied on Section 43CB and allowed the assessee's appeal, setting aside the CIT(A)'s order disallowing deduction on retention money to the extent of Rs. 11,36,37,740.
The Income Tax Appellate Tribunal (ITAT) held that retention money should be included in contract receipts for computing deduction u/s 80-IA for profits from construction activities. Section 43CB, effective from April 1, 2017, clearly provides that for percentage completion method, project completion method or straight-line method, contract revenue shall include retention money. The retention money cannot have different characteristics than the principal contract amount, as both are part of revenue received for construction activities eligible for Section 80-IA deduction. The ITAT relied on Section 43CB and allowed the assessee's appeal, setting aside the CIT(A)'s order disallowing deduction on retention money to the extent of Rs. 11,36,37,740.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 4801
Join Channel
TaxTMI 
