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TMI Blog2016 (1) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... me are heard together and are being disposed of with this common order. 2. The only issue involved in all the four appeals is regarding the postponement of income received as remuneration for profession/technical services rendered. For the sake of convenience, the facts have been taken from ITA No.7579/M/2011 for the A.Y. 2006-07. 3. The Revenue, in this appeal, has taken the following grounds: "1. On the facts and the circumstances of the case as well as in law, the Ld. CIT(A) erred in deleting the addition made by the A.O., the receipt as an income and allowed expenses claimed in the accounts from the receipts in order to determine the profit without appreciating the fact that the assessee company is only service provider company assi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A.A. Estate Pvt. Ltd. which has been engaged in the business of real estate developer. As per MOU, assessee was to be paid 20% of the profit from the project and in case of loss, assessee has to bear 20% of loss. Further, as per MOU, the assessee was to be paid fixed remuneration of Rs. 2 lakh per month up to June 2007 which was increased to Rs. 4 lakh per month from June 2007 onwards. This amount of remuneration paid was to be adjusted from the actual remuneration to be payable to the assessee on completion of project. The assessee further explained that the amount received of Rs. 32 lakhs was only advance and as such the same had not been offered to tax. It was explained that as per MOU, it was settled that only when the respective proj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Ld. CIT(A), the Revenue has come in appeal before us. 6. The first contention of the Ld. D.R. has been that the amount paid to the assessee during the year was substantially much more as compared to the agreed payment of Rs. 2 lakh per month up to June 2007 and Rs. 4 lakh per month from June 2007 onwards. Further that the payments made to the assessee have been shown as payment for professional/technical services rendered in TDS certificate. The assessee's nature of business being providing consultancy and technical services, it should not have adopted project completion method. As per the terms of the MOU, the assessee had to do various services/work which was much more than the work of consultancy and therefore it seemed that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and even in the current year. However the appeal arises from reopening of the cases under section 147/148 of the Act. 8. We have considered the rival contentions and have also gone through the records. We find that the Ld. CIT(A) has passed a very detailed and elaborative order wherein after verification of the records it has been pointed out that the amount received by the assessee was including the expenditure incurred by the assessee which was paid by M/s. A.A. Estate Pvt. Ltd. The amount paid to the assessee has not been claimed by the M/s. A.A. Estate Pvt. Ltd. as expenditure but has only been shown as work in progress. So there was a consistency in the accounts of both the payer and the payee. The services rendered by the assessee we ..... X X X X Extracts X X X X X X X X Extracts X X X X
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