9911796707
TMI Blog2018 (11) TMI 1116X X X X Extracts X X X X X X X X Extracts X X X X ..... ee as well as Shri Prithvijeet Rajaram Chavan has offered the income from this project at ₹57,14,251/- in each case in respective returns of income for AY. 2011-12. We are of the view that the AO has not appreciated the AIR information which is merely carried out the details of receipts from the buyers. The property was sold in next year when the project got completed and both the joint co-owner has disclosed their respective income in their returns of income earned from this project. We have verified this fact as noted by the CIT(A) also that the income from this project has already been disclosed by assessee as well as Shri Prithvijeet Rajaram Chavan in their respective returns of income. We find no infirmity in the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of ₹ 2,77,10,020/- in the project Harmony , however, no income from sale of flats were offered by the assessee in his return of income filed for the AY. 2010-11. 3. On the facts and in the circumstances of the case and in law, the Ld.CIT(A) has erred in deleting the addition made by the AO without considering the fact that the flats were sold during the AY 2010-11 by way of registered sale deeds which implies that the assessee has completed the project and as such, as per the Project Completion Method also the income pertaining to the above sale deeds executed and consideration received was required to be brought to tax in the year AY. 2010-11 itself. 4. On the facts and in the circumstances of the case and in law, the Ld.CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round, which may be necessary . 3. Brief facts are that the assessee is an individual engaged in the business of building and developing properties and legal consultancy. The assessee along with one Shri Prithvijeet Rajaram Chavan entered into a mutual understanding (MOU) for jointly buying, developing and selling property which was carried out during the year. During the previous year 2009-10 relevant to the AY 2010-11, the assessee has received advances from customers amounting to ₹2,77,10,020/- against the sale of flat in lieu of this joint venture with Shri Prithvijeet Rajaram Chavan. The AO treated this 50% of the advances received by the assessee amounting to ₹1,38,55,010/- as income from other sources by invoking th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of ₹57,14,251/- in AY. 2011-12. Aggrieved, now Revenue is in appeal before the Tribunal. 5. We have heard rival contentions and gone through the facts and circumstances of the case. The facts are that the construction of Harmony project which is a joint venture of the assessee and Shri Prithvijeet Rajaram Chavan was commenced on 06-10-2006 and finally completed on 19-06-2012. This completion was done on the date of possession of these two flats, and completion was given by Municipal Corporation of Greater Mumbai (MCGM). We find that the main thrust of the AO for making addition was that the assessee himself offered this income of ₹1,38,55,010/- which is 50% of the total receipts during the FY. 2009-10 relevant to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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