Latest Income-Tax Details

For Full Access To All Latest Judgments on Income Tax
Click Here To Subscribe Now
Take a tour of our Income-Tax Library

The revenue had accepted the method of accounting adopted by the assessee for the previous years and in the light of guidance note provided that AS-7 is applicable to real estate developers, assessee itself has changed the method of accounting and for the subsequent years, it has changed from Project Completion Method to Percentage Completion Method in the subsequent year and as such, there is revenue neutral in the assessment year in question.

Shanti Prime Publication Pvt. Ltd.

Sec. 145, 22, 28(i) & 56 of Income-tax Act, 1961 - Method of accounting - Revenue preferred appeal against the order of Tribunal in holding that the Ao ought to have followed "Complete Contract Method’ as claimed by the assessee and rental income received from Forum Mall should be brought to tax under the head "profits and gains from business" and income from fit outs should be brought to tax under the head ‘income from other sources’. High Court dismissed the appeal of the revenue confirming the order of Tribunal holding that “if assessee is in the business of taking land, putting up commercial building thereon, letting out such building with all furniture as his profession or his business then notwithstanding the fact that he has constructed building and he has also provided other facilities and even if there are two separate rental deeds, it does not fall within the income from house property”. - CIT V/s PRESTIGE ESTATE PROJECTS PVT. LTD. - [2020] 274 TAXMAN 006 (KARN)