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TMI Blog2010 (4) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... ts brought out by the A.O. on the record by invoking provisions of sec. 145A that no income is assessed in the earlier years on the advances or work completed - assessee is a builder - Assessing Officer noticed that the assessee did not offer any income from the said project even though 94% of the total completion level was attained in this year. He thus proceeded to bring to tax, on estimate basi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred 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 facts brought out by the A.O. on the record by invoking provisions of sec. 145A that no income is assessed in the earlier years on the advances or work completed." 2. None appeared for the assessee but we have heard the lear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 during the year and not entire receipt of the project, are to be taken into account. The learned CIT(A) observed as follows:- "I have considered the facts of the case and submission made by the appellant and order of the A.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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/-. Therefore, the additional amount received during the year was [Rs.2,79,50,270 (-) Rs.2,02,24,970] Rs.77,25,300/-. Profit can be worked out on this amount and not on total outstanding during the year as shown in the balance sheet. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 taken into account are revenues pertaining to such work and it is immaterial whether or not the said revenues are actually received in that year. We, therefore, see no merits in relief granted by the learned CIT(A). The order of the le ..... X X X X Extracts X X X X X X X X Extracts X X X X
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