TaxTMI 
TaxTMI 
2012 (10) TMI 173
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....rred in allowing relief to the assessee to the extent impugned in the grounds enumerated below :- 1.On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in accepting the contention of the assessee that since he is a real estate developer the revised AS-7 prescribing percentage completion method is not applicable and the AS-9 which provides for project completion method is applicable. 2. On the facts and circumstances of the case and in law, the Ld.CIT(A) erred in accepting the contention of the assessee that stock in trade namely, the project under consideration has been converted to capital asset for giving on long term lease and the eventual lease income should be taken as rental income. 3. Accordingly, on t....
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....ted. The AO noted that assessee was maintaining its accounts on mercantile system basis. Therefore, he observed that according to such system profit is required to be computed for each year. Taking into consideration such fact AO determined the income of the assessee from building activity @8% of the WIP and thus an addition of Rs. 1,58,08,518/- was made. The second addition made by the AO is with regard to interest earned by the assessee on FDR amounting to Rs. 9,53,936/-. The AO noted that the assessee did not pay any interest on loan for making such FDR and therefore, he treated the said amount as separately assessable under the head "income from other sources" 2.1 Both the above mentioned additions were challenged in the appeal filed....
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....ect and letting it out is within the main object of the business of the assessee. The clause is reproduced as under:- "The main business of the firm shall be that of development of immovable properties by constructing building or buildings for residential, commercial and f of for other purposes as may be permitted by the Municipal Corporation of Greater Bombay and other concern authorities and selling letting out or otherwise disposing of premises therein on ownership, tenancy or other basis or to transfer the said property with building or buildings thereon in favour of common organization formed by the parties from time to time and or such other business or businesses as partners may decide from time to time." 2.3 It was submitted t....
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....tion of Rs. 9,53,936/-. 2.6 Though the revenue has raised as many as three effective grounds but the issue raised is only with regard to deletion of an addition of Rs. 1,58,08,518/-. 2.7 Ld. D.R after narrating the facts relied upon the assessment order and pleaded that AO was right in assessing the income of the assessee with regard to project @8% and Ld. CIT(A) has wrongly deleted the same. 2.8 On the other hand, it was submitted by Ld. A.R that according to the documents submitted before AO and Ld. CIT(A), the project during the year was only completed upto 16% and he referred to page 208 of the paper book, where such fact has been mentioned by the architecture and certificate has been given that work has been completed in the s....
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....undisputed facts vide para 5.6 of her order and it will be relevant to reproduce the same. " 5.6. Besides this the undisputed facts in the case remain that.: (i) It is second year of construction in the case of the appellant. The offices so constructed by builder have not been sold rather appellant has entered into a long term lease on 16th December, 2008 with Vodafone and Indus Tower on 30.12.2008. (ii) Whatever advances were received from the parties at the time of booking initially, they have been returned. (iii) All the expenses incurred have been capitalized and consequently the appellant has shown in the P&L Account filed along with return of income the capital work in progress at Rs. 19,76,06,480/-, the advances received ....