2010 (4) TMI 853

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....orrectness of order dated 30th November 2007, passed by the learned Commissioner (Appeals) - XXIX, Mumbai, on the following grounds:- (i) On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in directing the A.O. to workout the profit on the additional amount of Rs.77,25,300/- received during the year only as against entire advances without appreciating the fac....

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....eceipts as income from the project. In doing so, the Assessing Officer claimed to have followed by Tribunal's decision in the case of Champion Construction Co. Vs ITO, 5 ITD 495. Aggrieved, assessee carried the matter in appeal before the learned CIT(A) but without complete success. While the learned CIT(A) upheld the action of the Assessing Officer in principle, he held that only 12% of receipts ....

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....as to be worked out percentage completed. In the absence of any information regarding exact percentage of work completed, the additional amount received from customer during the year can provide basis for working out the profit during the year. It is seen from the balance sheet that advances from customers as on 31.03.2002, was Rs.2,02,24,970/- and as on 31.03.2003, it was Rs.2,79,50,270/-. Theref....

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.... taxability cannot be confined to the receipts of that year alone as there may or may not be revenue receipts in that year. The profits are to be ascertained in respect of the work that is completed and to the extent it is completed, in the year of such completion - provided the threshold of substantial completion" is achieved. In this view of the matter, in our considered view, revenues to be tak....