FAITHFULL DEVELOPERS ,MUMBAI vs. ACIT CIR-20(1), MUMBAI

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ITA 6347/MUM/2025Status: DisposedITAT Mumbai11 December 2025AY 2018-19Bench: HON’BLE SHRI SANDEEP GOSAIN (Judicial Member), SHRI OMKARESHWAR CHIDARA (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that Section 43CB, mandating the percentage completion method, is applicable to real estate business from AY 2017-18 onwards. While confirming the AO's action of applying Section 43CB, the Tribunal directed the AO to recompute the estimated profits after considering the assessee's submissions regarding errors in the calculation.

What were the facts?

The assessee challenged the CIT(A)'s order confirming additions made by the AO for the assessment year 2018-19. The additions were based on the estimated business profit computed under Section 43CB of the Act using the percentage completion method, which the assessee contended was not applicable to their real estate business.

What were the issues?

Whether Section 43CB of the Income Tax Act, mandating the percentage completion method, is applicable to real estate business? Whether the AO correctly computed the estimated business profit under Section 43CB?

Which sections of the Income-tax Act were involved?

Section 250,Section 43CB,Section 145

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH MUMBAI

Before: HON’BLE SHRI SANDEEP GOSAIN& SHRI OMKARESHWAR CHIDARA

For Respondent: Ms. Kavitha Kaushik , Sr. DR
Hearing: 03.12.2025Pronounced: 04.12.2025

आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��थ� / The Respondent. 2. संबंिधत आयकर आयु� / The CIT(A) 3. आयकर आयु�(अपील) / Concerned CIT 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण,मु�बई/ DR, ITAT, Mumbai 5. गाड� फाईल / Guard file. 6.

आदेशानुसार/BY ORDER, स�ािपत �ित //True Copy//

1.

उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु�बई मु�बई / ITAT, Mumbai मु�बई मु�बई

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