ITA No.3751/M/2023 & ors. M/s. Reliable Builders & Developers

Parties Involved

Facts Summary

The case involves a dispute between M/s. Reliable Builders & Developers and the Revenue Department regarding the assessment of income for the Assessment Year 2018-19. The key issues revolve around the difference in sales turnover reported in the Income Tax Return (ITR) and Goods and Services Tax (GST) returns, the application of the project completion method of accounting, and the disallowance of certain expenses. The Assessee claimed that it followed the project completion method, which was upheld by the Commissioner of Income Tax (Appeals) and the Tribunal. The Revenue Department challenged this decision, arguing that the Assessee should have recognized the sales revenue under the percentage completion method. The Tribunal dismissed the Revenue's appeal and sustained the Commissioner's decision.…

Legal Issues

• 1. Difference in sales turnover reported in ITR and GST returns
• 2. Disallowance of architect and professional fees
• 3. Disallowance of transportation charges

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

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