https://www.taxtmi.com/caselaws?id=789390 Undisclosed on-money receipts in a real estate project are taxable only to the extent of the profit element embedded in those receipts, not as gross receipts. The estimation must reflect the project's nature, surrounding facts, past margins and comparable material; on the facts, a 10% addition was treated as fair and reasonable. Taxability was also aligned with the year of execution of the sale deed, not the year of mere receipt, because the assessee's revenue recognition followed conveyance and ICDS-III was held inapplicable on those facts. The ITAT thus granted partial relief to the assessee and rejected the Revenue's case on both rate and timing. en-us Fri, 27 Feb 2026 00:00:00 +0530 Wed, 08 Apr 2026 08:56:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789390 Undisclosed on-money receipts in a real estate project are taxable only to the extent of the profit element embedded in those receipts, not as gross receipts. The estimation must reflect the project's nature, surrounding facts, past margins and comparable material; on the facts, a 10% addition was treated as fair and reasonable. Taxability was also aligned with the year of execution of the sale deed, not the year of mere receipt, because the assessee's revenue recognition followed conveyance and ICDS-III was held inapplicable on those facts. The ITAT thus granted partial relief to the assessee and rejected the Revenue's case on both rate and timing. Case-Laws Income Tax Fri, 27 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789390