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AO can’t take diff. view if Set Com estimated 12% net profit on receipt of on-money for group concerns of assessee: ITAT

September 17, 2021[2021] 130 taxmann.com 142 (Mumbai - Trib.)

INCOME TAX : Where assessee-builder was following project completion method for accounting, income quantified on amount of on-money received by assessee on sale of flats ought to be taxed only in year in which project had completed construction in accordance to conditions prescribed as per Revised Guidance Note of 2012 issued by ICAI and thus, income estimated @ 25 per cent of on-money and taxed in year of receipt was unjustified and liable to be deleted

INCOME TAX : Where assessee-builder had received on money on sale of flats and, Commissioner estimated income applying rate of 25 per cent on said receipts, since Settlement Commission assessed net profit on-money receipts @ 12 per cent in cases of group concerns of assessee and same was accepted, a different view could not be taken and rate of 12 per cent should be applied on on-money to assess income embedded therein

INCOME TAX : Where assessee-builder received certain on-money receipts from buyers of flats, since nature and source of same being duly accepted by Assessing Officer in remand report, same would construe only as business receipt and not as cash credit under section 68

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