https://www.taxtmi.com/caselaws?id=314153 ITAT Ahmedabad dismissed revenue appeal in construction company case. Tribunal upheld CIT(A)'s deletion of profit estimation addition, ruling AO incorrectly applied Profit Margin Method without rejecting books under Section 145. Following ICAI guidance, land cost exclusion from construction development cost kept project completion below 25% threshold, negating revenue recognition requirement. Tribunal also upheld deletion of Section 36(1)(ii) disallowance on interest-free advances, finding assessee had surplus interest-free funds exceeding advances, following Gujarat HC precedent in Amod Stamping case. en-us Mon, 08 May 2023 00:00:00 +0530 Tue, 21 May 2024 07:40:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=314153 ITAT Ahmedabad dismissed revenue appeal in construction company case. Tribunal upheld CIT(A)'s deletion of profit estimation addition, ruling AO incorrectly applied Profit Margin Method without rejecting books under Section 145. Following ICAI guidance, land cost exclusion from construction development cost kept project completion below 25% threshold, negating revenue recognition requirement. Tribunal also upheld deletion of Section 36(1)(ii) disallowance on interest-free advances, finding assessee had surplus interest-free funds exceeding advances, following Gujarat HC precedent in Amod Stamping case. Case-Laws Income Tax Mon, 08 May 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=314153