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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 ..... the accounts of both the payer and the payee. The services rendered by the assessee were also relating to the activities of the builders and developers and as per the MOU, the quantification of the remuneration of the assessee was dependant on the completion of the project and under such circumstances, the assessee was justified to follow the project completion method of accounting. On the completion of the project, the amount quantified as the remuneration of the assessee was offered by the assessee for taxation and the same was accordingly claimed as expenditure by the builder. Till the completion of the project, the amount was not claimed by the builder as expenditure. The Ld. CIT(A) has also taken into consideration the accounting m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , hence the same 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 p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at there was an MOU between assessee and M/s. 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 ₹ 2 lakh per month up to June 2007 which was increased to ₹ 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 ₹ 32 lakhs was only advance and as such the same had not been offered to tax. It was explained that as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... additions so made by the AO. Being aggrieved by the order 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 ₹ 2 lakh per month up to June 2007 and ₹ 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessees as well of the payer and has been accepted in the past 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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