Milan Theatres P. Ltd. vs. DCIT Circle 12(3)(2)
Case No: ITA No.5072/Mum/2024
Court: Income Tax Appellate Tribunal, ‘D’ Bench, Mumbai
Date: 1/22/2026
Parties Involved
appellantMilan Theatres P. Ltd.
respondentDCIT Circle 12(3)(2)
Facts Summary
The assessee, Milan Theatres P. Ltd., is engaged in real estate development and constructed a shopping complex known as 'Milan Mall'. Originally comprising 24 units, the mall was restructured into 179 units plus one theatre. The assessee converted the mall from a capital asset into stock-in-trade in the year ended 31.03.2015 and adopted the Project Completion Method of accounting for revenue recognition. The construction of new shops commenced in the year ended 31.03.2015 and was completed in th…
Decision in favour of
Assessee
Legal Issues
- 1. Rejection of the Project Completion Method of accounting
- 2. Disallowance of proportionate interest expenditure
2 more legal issues analysed in this judgement.
Precedents Relied Upon
6 precedents cited in this judgement.