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TMI Blog2017 (11) TMI 1564X X X X Extracts X X X X X X X X Extracts X X X X ..... expenses. For this also, no cogent reason has been mentioned by the ld. CIT. We note that the A.O. has examined the expenses incurred and made some disallowances also. Hence, the ld. CIT’s direction to examine the expenses is a direction for making a roving enquiry not permissible u/s. 263 of the I. T. Act. Hence, we set aside the direction of the ld. CIT qua examination of the method of accounting for revenue recognition and examination of expenditure. As regards the ld. CIT’s observation to examine the service tax, TDS and MVAT provision and their applicability, the ld. Counsel of the assessee’s submission is that these are not applicable and have been complied with to the extent necessary. In this regard, we note that the A.O.’s order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come of project complete completed in February 2013 . Assessee have completed project and showed whole Income in A Y 2013-14. 4. On the facts and circumstance of the case and law, the Ld. CIT erred in passing order u/s 263 stating that service tax provision not looked by AO whereas assessee did not claimed any service tax in profit Loss Account. 5. On the facts and circumstance of the case and law, the Ld. CIT erred in passing order u/s 263 stating that VAT provision is not looked by AO whereas assessee did not received any amount of Vat from customer. 6. On the facts and circumstance of the case and law, the Ld. CIT erred in passing order u/s 263 stating that TDS provision u/s 194IA is not looked by AO whereas this prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also led to the adoption of AS-9 for recognition of income. 3. In view of the above, after giving the assessee a show cause notice and after receiving the reply thereon the ld. CIT held as under: 4.1 The resultant figure of profit or loss is Loss of ₹ 5,03,37,806/-. Accordingly, the, assessee has not recognized any income of the project for any earlier assessment years and succeeding assessment years applying AS-9 of the significant accounting method. The claim of expenses in so far as allowability of the same vis-a-vis the status of the project does not appear to have been examined. It appears from the P L Account and balance sheet that the extent of expenses claimed do not justify the situation as to why the project has res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings. The submission of the assessee in this regard in fact concede that for reasons mentioned in the submissions, the A.O. has not examined the implications of these levies in so far as recognition of income as required by AS-9. Probably if this data was procured and examined, the applicability of AS-9 would have been realized and the assessment could have been done accordingly so as to recognize incomes in the relevant assessment years. In fact in the submission made by the assessee during A.Y. 2012-13 wherein details of Booking Advance and Deposits are mentioned, it is seen that the assessee has registered its first sale document on 24.12.2008 and there have been regular sales documents thereafter. The assessee has contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der in accordance with law and after affording an opportunity of being heard to the assessee. The order shall be passed under the supervision and guidance of the Addl./Jt. CIT-28(1), Mumbai. 4. Against the above order, the assessee is in appeal before the ITAT. 5. On careful consideration, we find that the assessee is following project completion method. This has been recognized in assessee s own case by the ITAT in ITA Nos. 4895 4896/Mum/2013 for A.Ys. 2008-09 and 2009-10, vide order dated 27.05.2013. The concerned order reads as under: 6. We have considered the arguments advanced by the Ld DR for Revenue and AR for assessee. We have noticed that in the case of Bhoomi Construction Project Vs ACIT ACIT Vs Bhoomi Construction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered by the order of the Tribunal in ITA No.1267/M/2013 dated 15.05.2015 (case of assessee s sister concern). Hence keeping in view the principle of consistency, hence, we do not find any substance in the appeal filed by the revenue. 6. In the present order, the assessee has completed the project and accounted for the resultant profit/loss. Under these circumstances, the ld. CIT s observation that the assessee has not recognized any income of the project for any earlier assessment year or succeeding assessment year applying AS-9, is not at all sustainable. Once it is held that the assessee is following project completion method consistently and it has followed the same during the current assessment year in which the project has been co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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