Threshold for allottee-initiated insolvency petitions in leasehold real estate upheld; petition admitted after possession letters deemed legally ineff...
Contravention of foreign exchange rules in crossborder diamond payments; appellate tribunal reduces one appellant's penalty for delay and proportional...
RPA (Remote Pilot Aircraft) for military use defined to include drones/UAV/UAS; exemptions limited to specified defence imports with Joint Secretary c...
Transfer of going concern and transfer of input tax credit under GST allowed; exemption applies though interstate ledger transfers left to authorities...
Whether income from a landowner's revenue share under a JDA accrued by applying the percentage completion method was examined. It was held that revenue cannot be recognized until significant risks and rewards pass, which in case of immovable property occurs only upon execution and registration of the sale deed; mere agreements to sell or advance bookings do not effect transfer or accrual, and advances remain liabilities until possession and registered conveyance. As the landowner had only licensed development through a power of attorney, and consistently followed the project completion method, the tax authority could not mandate the percentage completion method merely because the developer used it. Accordingly, the addition for accrued income was rejected. - ITAT
Whether income from a landowner's revenue share under a JDA accrued by applying the percentage completion method was examined. It was held that revenue cannot be recognized until significant risks and rewards pass, which in case of immovable property occurs only upon execution and registration of the sale deed; mere agreements to sell or advance bookings do not effect transfer or accrual, and advances remain liabilities until possession and registered conveyance. As the landowner had only licensed development through a power of attorney, and consistently followed the project completion method, the tax authority could not mandate the percentage completion method merely because the developer used it. Accordingly, the addition for accrued income was rejected. - ITAT
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