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TMI Blog2013 (6) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... e income offered by the assessee on completion of the project is revenue neutral. In favour of assessee. Measurement of the plot of the project - Held that:- As a consequence of the directions of the coordinate Bench in assessee's own case [2012 (12) TMI 808 - ITAT, MUMBAI] it was submitted that the verification was assigned to the valuation cell of the department, who submitted the report on 19.03.2013. According to the annexure to the report, the actual size of the plot is 4097.81 sq. mt., which is more then one acre and certified as such by Shri Suresh Thavrdasani, Asst. Valuation Officer, Income Tax Department, Thane, AO is directed to provide full benefit, in so far as the deduction is concerned. In favour of assessee. - ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the department in assessee's own case in ITA No. 1082/Mum/2010 pertaining to assessment year 2006-07. 3. Grounds no. 1 2 pertain to project completion method rejected by the AO. 4. It was pointed out by the AR that the coordinate Bench dealt with the impugned issue in paras 5 to 5.1 of the ITAT order, as cited above and it was held as under: "The Assessing Officer has accepted the fact that the assessee has been consistently following the project completion method. The Assessing Officer has also recorded the fact that the project was not completed before 31st 3 2008 and the sale of flats as well as construction work were less than 30%. The relevant part of the assessment order in para 12 at page 20 of the assessment order reads a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long with the return of Assessment Year2006-07. Taking the profit at the rate 21.51% on the WIP, the profit up to 31.03.2006 comes to Rs. 49,74,650/- When the Assessing Officer himself has given the facts that the project was completed only after 31st March 2008 and up to the end of the year on 31st of March 2006, only 30% of the work was completed. In these undisputed facts, the decisions relied upon by the assessing officer in adopting percentage completion method of accounting is misplaced. It is not a case of substantial completion of project during this year and selling out the same. Further the Assessing Officer accepted this fact that on completion of project, the assessee has offered the income to tax after claiming the deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which was followed by the coordinate Bench in ITA No. 7395/Mum/2011, pertaining to the assessment year 2008-09, "In view of the above facts and circumstances and in the interest of justice, we admit the additional evidence and remand the issue to the record of the Assessing Officer to verify the actual size of the plot either by physical verification or through some agencies." 11. As a consequence of the directions of the coordinate Bench, it was submitted that the verification was assigned to the valuation cell of the department, who submitted the report on 19.03.2013. According to the annexure to the report, the actual size of the plot is 4097.81 sq. mt., which is more then one acre and certified as such by Shri Suresh Thavrdasani, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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