DCIT, THANE vs. UNIQUE SHANTI DEVELOPERS LLP, THANE

Briefly stated facts of the case are that Briefly stated facts of the case are that during the ye during the year under consideration, the assessee was eng the assessee was engaged in the business of building aged in the business of building and developing real estate properties and developing real estate properties. The assessee filed return of . The assessee filed return of income for relevant assessment year assessment year on 17.10.2016 on 17.10.2016 declaring total income at Rs.11,58,65,380/ income at Rs.11,58,65,380/-. The return of income filed by the come filed by the assessee was selected for scrutiny and statutory notices under the assessee was selected for scrutiny and statutory notices under the assessee was selected for scrutiny and statutory notices under the Income-tax Act, 1961 (in short ‘the Act’) were issued and complied tax Act, 1961 (in short ‘the Act’) were issued and complied tax Act, 1961 (in short ‘the Act’) were issued and complied with. In the assessment order passed u/s 143(3) of the Act dated with. In the assessment order passed u/s 143(3) of the Act dated with. In the assessment order passed u/s 143(3) of the Act dated 31.12.2018, the Assessing Officer made 31.12.2018, the Assessing Officer made two additions aggregating two additions aggregating to Rs.28,53,12,234/ Rs.28,53,12,234/-. The first addition of Rs.25,90,93,383/ Rs.25,90,93,383/- was made for under reported profit in relation to two old under reported profit in relation to two old under reported profit in relation to two old real estate projects namely ‘Skyline Skyline’ and ‘Unique Aurum-I I’, which were commenced commenced prior prior to to 1.4.2012 1.4.2012. The second addition of Rs.2,62,17,851/- was made for under reported profit in respect of was made for under reported profit in respect of was made for under reported profit in respect of projects commenced from 01.04.2012 namely projects commenced from 01.04.2012 namely ‘Unique Aurum Unique Aurum-II’, ‘Unique Castle’, ‘Unique Signature Unique Signature’ and ‘Unique Homes Unique Homes’.

Before us, the Ld. counsel for the assessee has filed a Paper Before us, the Ld. counsel for the assessee has filed a Paper Before us, the Ld. counsel for the assessee has filed a Paper Book in two volume containing pages k in two volume containing pages 100 and 144.

The ground No. 1 of the appeal of the assessee and ground No. The ground No. 1 of the appeal of the assessee and ground No. The ground No. 1 of the appeal of the assessee and ground No. 1 of the appeal of the Revenue are interconnected and therefore, 1 of the appeal of the Revenue are interconnected and t 1 of the appeal of the Revenue are interconnected and t both these grounds are both these grounds are taken up together for adjudication. adjudication.

(1) Subject to the provisions of this Scheme, any person may 180. (1) Subject to the provisions of this Scheme, any person may 180. (1) Subject to the provisions of this Scheme, any person may make, on or after the date of 10 commencement of this Scheme but make, on or after the date of 10 commencement of this Scheme but make, on or after the date of 10 commencement of this Scheme but before a date to be notified by the before a date to be notified by the Central Government in the Official Central Government in the Official Gazette, a declaration in respect of any income chargeable to tax Gazette, a declaration in respect of any income chargeable to tax Gazette, a declaration in respect of any income chargeable to tax under the Income under the Income-tax Act for any assessment year prior to the tax Act for any assessment year prior to the assessment year beginning on the 1st day of April, 2017 assessment year beginning on the 1st day of April, 2017- (a) for which he has failed to furni (a) for which he has failed to furnish a return under section 139 of the sh a return under section 139 of the Income-tax Act; tax Act; (b) which he has failed to disclose in a return of income furnishe (b) which he has failed to disclose in a return of income furnishe (b) which he has failed to disclose in a return of income furnished by him under the Income him under the Income-tax Act before the date of commencement of this Act before the date of commencement of this Scheme; (c) which has escaped assessment by reason of the omiss (c) which has escaped assessment by reason of the omission or failure ion or failure on the part of such person to furnish a return under the Income on the part of such person to furnish a return under the Income on the part of such person to furnish a return under the Income-tax Act or to disclose fully and truly all material facts necessary for the or to disclose fully and truly all material facts necessary for the or to disclose fully and truly all material facts necessary for the assessment or otherwise. assessment or otherwise. (2) Where the income chargeable to tax is declared in the form of (2) Where the income chargeable to tax is declared in the form of (2) Where the income chargeable to tax is declared in the form of investment in any asset, the fair 20 market value of such asset as on in any asset, the fair 20 market value of such asset as on in any asset, the fair 20 market value of such asset as on the date of commencement of this Scheme shall be deemed to be the the date of commencement of this Scheme shall be deemed to be the the date of commencement of this Scheme shall be deemed to be the undisclosed income for the purposes of sub undisclosed income for the purposes of sub-section (1). (3) The fair market value of any asset shall be determined in such (3) The fair market value of any asset shall be determined in such (3) The fair market value of any asset shall be determined in such manner, as may be prescribed. as may be prescribed. (4) No deduction in respect of any expenditure or allowance (4) No deduction in respect of any expenditure or allowance (4) No deduction in respect of any expenditure or allowance shall be allowed against the income in respect of which shall be allowed against the income in respect of which shall be allowed against the income in respect of which declaration under this section is made. declaration under this section is made.” (emphasis supplied by us) (emphasis supplied by us) 5.10 . On perusal of prescribed form On perusal of prescribed form-I filed by the assessee for filed by the assessee for availing the scheme, which , which is available on paper book page book page 87 to 100 , it is seen that assessee declared , it is seen that assessee declared an amount of Rs. amount of Rs. 5,75,00,000/- under the scheme under the scheme for difference in i for difference in income as per ICAI guidelines on WIP and income declared f ICAI guidelines on WIP and income declared for AY 2015 or AY 2015-16 for skyline and Aurum-II project. II project. The relevant statement of undisclosed The relevant statement of undisclosed income, which is an Annexure appended to prescribed form-I, income, which is an Annexure appended to prescribed form income, which is an Annexure appended to prescribed form available on paper book page 89 is reproduced as under: available on paper book page 89 is reproduced as under: available on paper book page 89 is reproduced as under:

In view of the above discussion, I am of considered opinion that action 29. In view of the above discussion, I am of considered opinion that action 29. In view of the above discussion, I am of considered opinion that action of the assessing officer in ac of the assessing officer in accepting the method of accounting in earlier cepting the method of accounting in earlier assessment years and allowing it to capitalize the indirect expenses in WIP assessment years and allowing it to capitalize the indirect expenses in WIP assessment years and allowing it to capitalize the indirect expenses in WIP in earlier years and then suddenly excluding the indirect expenses from in earlier years and then suddenly excluding the indirect expenses from in earlier years and then suddenly excluding the indirect expenses from the opening WIP in the year when the sales considerations are bo the opening WIP in the year when the sales considerations are bo the opening WIP in the year when the sales considerations are booked in the P/L Account, is against the principle of natural justice especially when the P/L Account, is against the principle of natural justice especially when the P/L Account, is against the principle of natural justice especially when genuineness of these expenses is not under doubt. The action of the genuineness of these expenses is not under doubt. The action of the genuineness of these expenses is not under doubt. The action of the assessing officer has resulted in not allowing deduction for genuine assessing officer has resulted in not allowing deduction for genuine assessing officer has resulted in not allowing deduction for genuine expenses in any of the assessment expenses in any of the assessment years which cannot be upheld. years which cannot be upheld. Therefore, considering the totality of facts of the case, I am of the opinion Therefore, considering the totality of facts of the case, I am of the opinion Therefore, considering the totality of facts of the case, I am of the opinion that the aggregate amount of Rs. 20,15,94,392/ that the aggregate amount of Rs. 20,15,94,392/- incurred towards incurred towards employees' cost, admin expenses, selling & distribution expenses and employees' cost, admin expenses, selling & distribution expenses and employees' cost, admin expenses, selling & distribution expenses and other expenses other expenses in earlier years cannot be excluded from the opening WIP in earlier years cannot be excluded from the opening WIP as on 01/04/2015 and therefore this addition is directed to be deleted. as on 01/04/2015 and therefore this addition is directed to be deleted. as on 01/04/2015 and therefore this addition is directed to be deleted.” 6.4 We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the We have heard rival submission of the parties and perused the relevant material on record. The Assessing Officer held that relevant material on record. The Assessing Officer relevant material on record. The Assessing Officer administrative expenses, employee cost etc. are allowable in the administrative expenses, employee cost etc. are allowable in the administrative expenses, employee cost etc. are allowable in the respective years of incurring of incurring and cannot be allowed in the and cannot be allowed in the assessment year under consideration. According to the Assessing assessment year under consideration. According to the Assessing assessment year under consideration. According to the Assessing Officer in percentage completion method, the profit proportionate to Officer in percentage completion method, the profit propor Officer in percentage completion method, the profit propor the stage of construction has to be recognized in respect of project the stage of construction has to be recognized in respect of project the stage of construction has to be recognized in respect of project but the employee cost but the employee cost, administrative expenses etc. are to be administrative expenses etc. are to be allowed in year in which in which same are incurred. But the contention of same are incurred. But the contention of the assessee that those expenses have not been c the assessee that those expenses have not been claimed in relevant laimed in relevant assessment years and same have been carried forward as work in assessment years and same have been carried forward as work in assessment years and same have been carried forward as work in progress to be reduced from the revenue or the sales at the time of progress to be reduced from the revenue or the sales at the time of progress to be reduced from the revenue or the sales at the time of Unique Shanti Developers LLP Unique Shanti Developers LLP 19 & 3902/MUM/2023 ITA Nos. 3856 & completion of the entire projects. completion of the entire projects. In our opinion, w In our opinion, whatever be the method of the assessee method of the assessee, whether project completion or percentage completion or percentage completion or a unique method, which is combination of both, but completion or a unique method, which is combination of both, but completion or a unique method, which is combination of both, but sane has been accepted by the Revenue in earlier years and said has been accepted by the Revenue in earlier years and said has been accepted by the Revenue in earlier years and said indirect expenses have been allowed to be carried forward as part of indirect expenses have been allowed to be carried forward as part of indirect expenses have been allowed to be carried forward as part of WIP. We find that the Ld. CIT(A) We find that the Ld. CIT(A) has mentioned that assessee has has mentioned that assessee has not claimed those expens claimed those expenses in relevant assessment years. If that is es in relevant assessment years. If that is so, then in principle, those carried forward indirect expenses are to so, then in principle, those carried forward indirect expenses are to so, then in principle, those carried forward indirect expenses are to be allowed in the year of completion of project, b be allowed in the year of completion of project, but, from the details of indirect expenses filed by the assessee, penses filed by the assessee, it is not clear whether the it is not clear whether the administrative expenses administrative expenses, selling expenses, employee cost , employee cost and other expenses etc. carried forward to WIP of old projects pertain to carried forward to WIP of old projects pertain to carried forward to WIP of old projects pertain to projects initiated prior to March, 2012 projects initiated prior to March, 2012 or project commenced post project commenced post March, 2012. The administrative expenses, employee cost etc. in arch, 2012. The administrative expenses, employee cost etc. in arch, 2012. The administrative expenses, employee cost etc. in relation to two projects namely Skyline and Unique Aurum-1 could relation to two projects namely Skyline and Unique Aurum relation to two projects namely Skyline and Unique Aurum only be allowed to be carried forward as work in progress following only be allowed to be carried forward as work in progress following only be allowed to be carried forward as work in progress following the unique method of accounting of the assessee subject to same the unique method of accounting of the assessee subject to s the unique method of accounting of the assessee subject to s has not been claimed in earlier years. In the circumstances, we feel has not been claimed in earlier years. In the circumstances, we feel has not been claimed in earlier years. In the circumstances, we feel it appropriate to restore this issue back to the file of the Assessing it appropriate to restore this issue back to the file of the Assessing it appropriate to restore this issue back to the file of the Assessing Officer for verification of Officer for verification of total cost on account of administrative, on account of administrative, selling, employee cost selling, employee cost and other expenses and identify those nd identify those indirect expenses pertaining to the two projects nam pertaining to the two projects namely ‘Skyline’ pertaining to the two projects nam and ‘Unique Aurum-1 1’, incurred upto 31.03.2015, for to be added to for to be added to the closing WIP as on 31.03.2015. the closing WIP as on 31.03.2015. Further, we note from paper we note from paper book page 99 that the profit declared in ea book page 99 that the profit declared in earlier years also include rlier years also include Unique Shanti Developers LLP Unique Shanti Developers LLP 20 & 3902/MUM/2023 ITA Nos. 3856 & profit from sale of development profit from sale of development right certificates and interest, which certificates and interest, which can’t be added to WIP as profit of the old projects and consequently added to WIP as profit of the old projects and consequently added to WIP as profit of the old projects and consequently can’t be reduced from the revenue from the revenue in the year of completion of the in the year of completion of the project, as same is not part of profit from project. project, as same is not part of profit from project. The ground No. 1 The ground No. 1 of the Revenue is accordingly allowed partly for statistical purposes. of the Revenue is accordingly allowed partly for statistical purposes. of the Revenue is accordingly allowed partly for statistical purposes.

The ground No. 2 of the appeal of the Revenue relates to The ground No. 2 of the appeal of the Revenue relates to The ground No. 2 of the appeal of the Revenue relates to addition of Rs.2,62,1 ddition of Rs.2,62,17,851/- (sic) in relation to non ) in relation to non-recognition of the revenue pertaining to three the revenue pertaining to three new projects, which has been which has been deleted by the Ld. CIT(A). deleted by the Ld. CIT(A).

On the other hand, the appellant has submitted that Accounting 45. On the other hand, the appellant has submitted that Accounting 45. On the other hand, the appellant has submitted that Accounting Standard AS-7 is to be read along with Accoun 7 is to be read along with Accounting Standard AS ting Standard AS-9 because para 3.3 of AS para 3.3 of AS-7 clearly provides that revenue is to recognized when the 7 clearly provides that revenue is to recognized when the conditions specified in paragraph 10 & 11 of AS conditions specified in paragraph 10 & 11 of AS-9 are fulfilled. As per AS 9 are fulfilled. As per AS- 9, one of the most important requirements is transfer of all significant risks 9, one of the most important requirements is transfer of all significant risks 9, one of the most important requirements is transfer of all significant risks and reward of d reward of ownership' which is required to be determined on the basis ownership' which is required to be determined on the basis of terms and conditions of the agreement for sale. As per para 3.3 of AS of terms and conditions of the agreement for sale. As per para 3.3 of AS of terms and conditions of the agreement for sale. As per para 3.3 of AS-7, this agreement for sale is considered of having the effect of transferring all this agreement for sale is considered of having the effect of transferring all this agreement for sale is considered of having the effect of transferring all significant risk and reward of significant risk and reward of ownership to the buyer, provided the ownership to the buyer, provided the agreement is legally enforceable. The AS agreement is legally enforceable. The AS-7 further provides that once such 7 further provides that once such legally enforceable agreement is entered with the buyer, the revenue is to legally enforceable agreement is entered with the buyer, the revenue is to legally enforceable agreement is entered with the buyer, the revenue is to recognized subject to fulfillment of other conditions, irrespective recognized subject to fulfillment of other conditions, irrespective recognized subject to fulfillment of other conditions, irrespective of the fact whether legal title is transferred or not or possession is given or not. So, whether legal title is transferred or not or possession is given or not. So, whether legal title is transferred or not or possession is given or not. So, one of the important conditions is presence of a legally enforceable one of the important conditions is presence of a legally enforceable one of the important conditions is presence of a legally enforceable agreement to sell. agreement to sell. 46.1 The appellant has contended that Assessing Officer has erroneously 46.1 The appellant has contended that Assessing Officer has erroneously 46.1 The appellant has contended that Assessing Officer has erroneously considered the booking form as letter of acceptance and has equated the red the booking form as letter of acceptance and has equated the red the booking form as letter of acceptance and has equated the same to an enforceable contract/agreement to sell. A perusal of specimen same to an enforceable contract/agreement to sell. A perusal of specimen same to an enforceable contract/agreement to sell. A perusal of specimen booking form filed before the Assessing Officer suggests that this is an booking form filed before the Assessing Officer suggests that this is an booking form filed before the Assessing Officer suggests that this is an application form by the buyer to the appellan application form by the buyer to the appellant wherein, the buyer had t wherein, the buyer had agreed to book a specific flat for a specified consideration. Clause 11 of agreed to book a specific flat for a specified consideration. Clause 11 of agreed to book a specific flat for a specified consideration. Clause 11 of this form reads as under: this form reads as under:- "11. I/We have clearly understood that this application does not "11. I/We have clearly understood that this application does not "11. I/We have clearly understood that this application does not constitute an agreement to sell and I/We do not become entitled constitute an agreement to sell and I/We do not become entitled constitute an agreement to sell and I/We do not become entitled to the provisional allotment of a residential flat notwithstanding the the provisional allotment of a residential flat notwithstanding the the provisional allotment of a residential flat notwithstanding the fact fact fact that that that the the the company company company may may may have have have issued issued issued a a a receipt receipt receipt in in in acknowledgement of the money tendered with this application. acknowledgement of the money tendered with this application. acknowledgement of the money tendered with this application. I/We undertake to execute the agreement. Allotment letter on the I/We undertake to execute the agreement. Allotment letter on the I/We undertake to execute the agreement. Allotment letter on the company' company's standard format agreeing to abide & agree by the terms s standard format agreeing to abide & agree by the terms and condition of the same. I and condition of the same. I/We agree to abide by the terms and We agree to abide by the terms and conditions of this application and of allotment letter." conditions of this application and of allotment letter." conditions of this application and of allotment letter."

This writing is merely a letter of intent and is not and does not 13. This writing is merely a letter of intent and is not and does not 13. This writing is merely a letter of intent and is not and does not purport to be an agreement for sale/purchase of the said flat. Your purport to be an agreement for sale/purchase of the said flat. Your purport to be an agreement for sale/purchase of the said flat. Your rights shall become effective only on execution of the agreement for rights shall become effective only on execution of the agreement for rights shall become effective only on execution of the agreement for sale thoug sale though your obligation to pay the consideration amount as per h your obligation to pay the consideration amount as per Annexure "A" shall be liable to be discharged, irrespective of Annexure "A" shall be liable to be discharged, irrespective of Annexure "A" shall be liable to be discharged, irrespective of whether the agreement for sale has been executed or not." whether the agreement for sale has been executed or not." whether the agreement for sale has been executed or not." 46.4 Thus clause Thus clause-13 of the allotment letter clearly provides that the 13 of the allotment letter clearly provides that the allotment letter should not be considered as agreement for sale. It further t letter should not be considered as agreement for sale. It further t letter should not be considered as agreement for sale. It further provides that the buyer's right shall become effective only on execution of provides that the buyer's right shall become effective only on execution of provides that the buyer's right shall become effective only on execution of the agreement for sale. the agreement for sale.

As discussed earlier in this order, that as per AS 47. As discussed earlier in this order, that as per AS-7 read with AS 7 read with AS-9, revenue is requ revenue is required to be recognized on those projects, where at least 10% ired to be recognized on those projects, where at least 10% of the total revenue as per the agreements of sale or any other legally of the total revenue as per the agreements of sale or any other legally of the total revenue as per the agreements of sale or any other legally enforceable documents are realized. In the present case, the booking form enforceable documents are realized. In the present case, the booking form enforceable documents are realized. In the present case, the booking form as well as the allotment letter clearly provides t as well as the allotment letter clearly provides that buyer's rights are not hat buyer's rights are not effective unless agreement for sale is executed. effective unless agreement for sale is executed. Thus, it cannot be said that Thus, it cannot be said that all significant risk and reward of ownership have been transferred to the significant risk and reward of ownership have been transferred to the significant risk and reward of ownership have been transferred to the buyer. Therefore, the booking letter as well as allotment letter cannot be Therefore, the booking letter as well as allotment letter cannot be Therefore, the booking letter as well as allotment letter cannot be said to be a legally enforceable agreement to sale. id to be a legally enforceable agreement to sale.

It may also be mentioned that a similar issue has been considered It may also be mentioned that a similar issue has been considered It may also be mentioned that a similar issue has been considered by the Hon'ble ITAT Mumbai in the case of M/s Shankala Realtors Pvt Ltd Vs. the Hon'ble ITAT Mumbai in the case of M/s Shankala Realtors Pvt Ltd Vs. the Hon'ble ITAT Mumbai in the case of M/s Shankala Realtors Pvt Ltd Vs. ITO dated 28/8/2019. Shankala Realtors ITO ITA No.3827/MUM/2017 dated 28/8/2019. Shankala Realtors ITO ITA No.3827/MUM/2017 dated 28/8/2019. Shankala Realtors was in the business of real estate development and was following the percentage the business of real estate development and was following the percentage the business of real estate development and was following the percentage completion method and offered the income only in respect of those flats for completion method and offered the income only in respect of those flats for completion method and offered the income only in respect of those flats for which agreements were registered. The Assessing Officer observed that in which agreements were registered. The Assessing Officer observed that in which agreements were registered. The Assessing Officer observed that in many cases, the assessee ha many cases, the assessee had received considerable portion of advance, d received considerable portion of advance, still it had not offered the income for taxation on the pretext that no still it had not offered the income for taxation on the pretext that no still it had not offered the income for taxation on the pretext that no agreement has been made with the prospective buyer. The Assessing agreement has been made with the prospective buyer. The Assessing agreement has been made with the prospective buyer. The Assessing Officer after considering the AS Officer after considering the AS-9 noted that when a prospective buyer 9 noted that when a prospective buyer approached the appellant, allotment letter is issued on receipt of advance roached the appellant, allotment letter is issued on receipt of advance roached the appellant, allotment letter is issued on receipt of advance money and in some cases, the assessee has taken almost 90% of the total money and in some cases, the assessee has taken almost 90% of the total money and in some cases, the assessee has taken almost 90% of the total Unique Shanti Developers LLP Unique Shanti Developers LLP 24 & 3902/MUM/2023 ITA Nos. 3856 & value. Accordingly, the Assessing Officer held that entering into an value. Accordingly, the Assessing Officer held that entering into an value. Accordingly, the Assessing Officer held that entering into an agreement and its registration is not neces agreement and its registration is not necessary for recognition of revenue sary for recognition of revenue on advances and worked out the profit. on advances and worked out the profit. The Ld. CIT(A), agreed with the The Ld. CIT(A), agreed with the reasons given by the Assessing Officer and upheld the addition. When reasons given by the Assessing Officer and upheld the addition. When reasons given by the Assessing Officer and upheld the addition. When matter reached to Hon'ble ITAT Mumbai, the Bench observed as under: matter reached to Hon'ble ITAT Mumbai, the Bench observed as under: matter reached to Hon'ble ITAT Mumbai, the Bench observed as under: "7.3 In the inst In the instant case as recorded by the AO when a prospective as recorded by the AO when a prospective buyer approaches the assessee for booking the fat, allotment letter approaches the assessee for booking the fat, allotment letter approaches the assessee for booking the fat, allotment letter is issued to the buyer is issued to the buyer on receipt of the advance money. on receipt of the advance money. The appellant filed a written submission dated 26.03.2015 before The appellant filed a written submission dated 26.03.2015 before The appellant filed a written submission dated 26.03.2015 before the AO stating th the AO stating that the degree of work completed and certified by at the degree of work completed and certified by architect till 31.03.2009 is 73% and the assessee architect till 31.03.2009 is 73% and the assessee architect till 31.03.2009 is 73% and the assessee-company has recognized the revenue by applying 73% to the value of agreements recognized the revenue by applying 73% to the value of agreements recognized the revenue by applying 73% to the value of agreements executed till 31.03.2009. It was further stated before the AO that executed till 31.03.2009. It was further stated before the AO that executed till 31.03.2009. It was further stated before the AO that the revenue the revenue in respect of balance advances could not be recognized in respect of balance advances could not be recognized as passing of risks and rewards by virtue of ownership is an as passing of risks and rewards by virtue of ownership is an as passing of risks and rewards by virtue of ownership is an essential condition for revenue recognition as per AS essential condition for revenue recognition as per AS essential condition for revenue recognition as per AS-9, which has not been fulfilled in the instant case, as no agreement is executed not been fulfilled in the instant case, as no agreement is executed not been fulfilled in the instant case, as no agreement is executed and no possession have been given to the buyer. o possession have been given to the buyer. The case laws relied on by the Ld. counsel and Ld. DR have been The case laws relied on by the Ld. counsel and Ld. DR have been The case laws relied on by the Ld. counsel and Ld. DR have been narrated at length hereinbefore. One principle which emerges from narrated at length hereinbefore. One principle which emerges from narrated at length hereinbefore. One principle which emerges from the above case laws is the role of agreement executed. Immovable the above case laws is the role of agreement executed. Immovable the above case laws is the role of agreement executed. Immovable property is not co property is not conveyed by delivery of possession, but by a duly nveyed by delivery of possession, but by a duly registered deed. Further, it is the date of execution of registered registered deed. Further, it is the date of execution of registered registered deed. Further, it is the date of execution of registered document, document, not the date of delivery of possession or the date of not the date of delivery of possession or the date of registration of document which is relevant. Once the executed registration of document which is relevant. Once the executed registration of document which is relevant. Once the executed documents are documents are registered, the transfer will take place on the date registered, the transfer will take place on the date of execution of documents and not on the date of registration of of execution of documents and not on the date of registration of of execution of documents and not on the date of registration of documents as held in Alapati Venkataramiah v. CIT documents as held in Alapati Venkataramiah v. CIT documents as held in Alapati Venkataramiah v. CIT (1965) 57 ITR 185 (SC). 185 (SC). As per the ingredients of AS As per the ingredients of AS-7 and AS-9, 'revenue' be recognized 9, 'revenue' be recognized even though legal title of the property is not transferred and even though legal title of the property is not transferred and even though legal title of the property is not transferred and possession is not given. Once seller transfers significant risks and possession is not given. Once seller transfers significant risks and possession is not given. Once seller transfers significant risks and rewards of ownership to buyer, seller thereafter acts like a rewards of ownership to buyer, seller thereafter acts like a rewards of ownership to buyer, seller thereafter acts like a contractor. Accordingly, revenue recognition will have to be a contractor. Accordingly, revenue recognition will have to be a contractor. Accordingly, revenue recognition will have to be as in Percentage Completion Method' (AS Percentage Completion Method' (AS-7). We are concerned here with the execution of agreements and not We are concerned here with the execution of agreements and not We are concerned here with the execution of agreements and not with the registration of agreements. with the registration of agreements. Having considered the application of principles of AS Having considered the application of principles of AS Having considered the application of principles of AS-9 in respect of sale of goods to a real estate project and sale of goods to a real estate project and the case laws relied on by the case laws relied on by both sides in the back drop of the facts of the case, we set aside both sides in the back drop of the facts of the case, we set aside both sides in the back drop of the facts of the case, we set aside the order of the Ld. CIT(A) and restore the matter to the file of the the order of the Ld. CIT(A) and restore the matter to the file of the the order of the Ld. CIT(A) and restore the matter to the file of the AO to make an addition, bringing to tax by percentage completion AO to make an addition, bringing to tax by percentage completion AO to make an addition, bringing to tax by percentage completion method, the revenue out of method, the revenue out of the remaining executed agreements, if the remaining executed agreements, if any, during the impugned assessment year. The assessee is any, during the impugned assessment year. The assessee is any, during the impugned assessment year. The assessee is directed to file the documents/evidence in respect of agreements directed to file the documents/evidence in respect of agreements directed to file the documents/evidence in respect of agreements Unique Shanti Developers LLP Unique Shanti Developers LLP 25 & 3902/MUM/2023 ITA Nos. 3856 & executed during the impugned assessment year. Needless to say, executed during the impugned assessment year. Needless to say, executed during the impugned assessment year. Needless to say, the AO would provide reasonable the AO would provide reasonable opportunity of being heard to the opportunity of being heard to the assessee before finalizing the order." assessee before finalizing the order."

Thus, in the case of Shankala Realtors (supra), the jurisdictional ITAT 49. Thus, in the case of Shankala Realtors (supra), the jurisdictional ITAT 49. Thus, in the case of Shankala Realtors (supra), the jurisdictional ITAT after considering AS after considering AS-7 and AS-9 has held that while applying the 9 has held that while applying the percentage completion method, the date of completion method, the date of execution of 'agreement to sell' execution of 'agreement to sell' is the point Which determines the point of recognition of revenue because is the point Which determines the point of recognition of revenue because is the point Which determines the point of recognition of revenue because passing of risks and rewards by virtue of ownership is an essential passing of risks and rewards by virtue of ownership is an essential passing of risks and rewards by virtue of ownership is an essential condition for revenue recognition. The Hon'ble ITAT has further held that it condition for revenue recognition. The Hon'ble ITAT has further held that it condition for revenue recognition. The Hon'ble ITAT has further held that it is the date of execution of agreement which is important and not the date he date of execution of agreement which is important and not the date he date of execution of agreement which is important and not the date of registration of agreement, as canvassed by the assessee. Accordingly, of registration of agreement, as canvassed by the assessee. Accordingly, of registration of agreement, as canvassed by the assessee. Accordingly, the ITAT directed the assessing officer to bring to tax, the revenue out of the ITAT directed the assessing officer to bring to tax, the revenue out of the ITAT directed the assessing officer to bring to tax, the revenue out of the remaining executed agreements, if the remaining executed agreements, if any, during the impugned any, during the impugned assessment year, by applying the percentage completion method. It is seen assessment year, by applying the percentage completion method. It is seen assessment year, by applying the percentage completion method. It is seen that the facts of the present case are similar to the case of Shankala that the facts of the present case are similar to the case of Shankala that the facts of the present case are similar to the case of Shankala Realtors (supra). Realtors (supra).

An identical issue was raised by the Assessing Officer in the c 50. An identical issue was raised by the Assessing Officer in the c 50. An identical issue was raised by the Assessing Officer in the case of a group concern namely M/s Unique Shanti Neminath Developers LLP group concern namely M/s Unique Shanti Neminath Developers LLP group concern namely M/s Unique Shanti Neminath Developers LLP wherein similar additions were made by the Assessing Officer while wherein similar additions were made by the Assessing Officer while wherein similar additions were made by the Assessing Officer while completing assessment for A.Y. 2016 completing assessment for A.Y. 2016-17. The said issue was decided in 17. The said issue was decided in favour of the tax payer by CIT(A). Against the favour of the tax payer by CIT(A). Against the said order, the revenue filed the revenue filed an appeal before an appeal before Hon. ITAT in ITA No. 1733/Mum/2022. Vide order dated Hon. ITAT in ITA No. 1733/Mum/2022. Vide order dated 24/11/2022, the Hon. 24/11/2022, the Hon. ITAT has dismissed the revenue's appeal by ITAT has dismissed the revenue's appeal by observing as under: observing as under:- "12. Aforesaid findings returned by the Ld. CIT(A) need no "12. Aforesaid findings returned by the Ld. CIT(A) need no "12. Aforesaid findings returned by the Ld. CIT(A) need no interference interference on the grounds inter-alia that the entire revenue has alia that the entire revenue has been recognized by the assessee as per accepted percentage been recognized by the assessee as per accepted percentage been recognized by the assessee as per accepted percentage completion method; that the flats for which no doubt assessee has completion method; that the flats for which no doubt assessee has completion method; that the flats for which no doubt assessee has received more than 10% of the sale consideration but cannot be received more than 10% of the sale consideration but cannot be received more than 10% of the sale consideration but cannot be taken for rev taken for revenue recognition because enforceable contract qua all enue recognition because enforceable contract qua all sale consideration, the revenue cannot be recognized for taxing the sale consideration, the revenue cannot be recognized for taxing the sale consideration, the revenue cannot be recognized for taxing the income; that moreover the Ld. CIT(A) has returned factual findings income; that moreover the Ld. CIT(A) has returned factual findings income; that moreover the Ld. CIT(A) has returned factual findings that there is no flat for which revenue is required to be recognize that there is no flat for which revenue is required to be recognize that there is no flat for which revenue is required to be recognized over and above the revenue recognized in the books of account over and above the revenue recognized in the books of account over and above the revenue recognized in the books of account and; that moreover the assessee has already offered the and; that moreover the assessee has already offered the and; that moreover the assessee has already offered the corresponding revenue in the subsequent years for A.Y. 2017 corresponding revenue in the subsequent years for A.Y. 2017 corresponding revenue in the subsequent years for A.Y. 2017-18, 2018-19 and 2019 19 and 2019-20." Since, the issue under consideration stands decide Since, the issue under consideration stands decided by Jurisdictional ITAT d by Jurisdictional ITAT in assessee's favour in the case of sister concern of the appellant, it is in assessee's favour in the case of sister concern of the appellant, it is in assessee's favour in the case of sister concern of the appellant, it is incumbent upon me to follow the said decision. incumbent upon me to follow the said decision.

One of the contentions of the appellant is that even though it is 51. One of the contentions of the appellant is that even though it is 51. One of the contentions of the appellant is that even though it is following the consistent policy regardi following the consistent policy regarding the recognition of revenue, the ng the recognition of revenue, the Assessing Officer has been inconsistent in this regard. A perusal of the Assessing Officer has been inconsistent in this regard. A perusal of the Assessing Officer has been inconsistent in this regard. A perusal of the assessment order for A.Y. 2017 assessment order for A.Y. 2017-18 suggests that while completing the 18 suggests that while completing the assessment, the Assessing Officer did not stick to the accounting policy assessment, the Assessing Officer did not stick to the accounting policy assessment, the Assessing Officer did not stick to the accounting policy adopted by him for A.Y. d by him for A.Y. 2016-17 (assessment year under consideration) 17 (assessment year under consideration)

Another contention of the appellant is that the method of revenue 52. Another contention of the appellant is that the method of revenue 52. Another contention of the appellant is that the method of revenue recognition adopted by the Assessing Officer has resulted in pre recognition adopted by the Assessing Officer has resulted in pre recognition adopted by the Assessing Officer has resulted in pre-ponment of the revenue from subsequent assessment years t of the revenue from subsequent assessment years to the assessment year o the assessment year under consideration. It has been submitted that by following the under consideration. It has been submitted that by following the under consideration. It has been submitted that by following the accounting policy, the appellant itself has recognized revenue in accounting policy, the appellant itself has recognized revenue in accounting policy, the appellant itself has recognized revenue in subsequent assessment years. subsequent assessment years. As a result, same revenue and same As a result, same revenue and same income stands taxed in two assessment y income stands taxed in two assessment years resulting in double taxation. ears resulting in double taxation. A chart giving the year A chart giving the year-wise details in which the said revenue was wise details in which the said revenue was recognized for each of three projects along with corresponding audited recognized for each of three projects along with corresponding audited recognized for each of three projects along with corresponding audited financial statements have been filed by the appellant. financial statements have been filed by the appellant. The consolidated The consolidated amount is tabulated as under for all the three projects: abulated as under for all the three projects: Sale recognized in P/L Account A.Y.

Considering the totality of facts of the case and the decisions 53. Considering the totality of facts of the case and the decisions 53. Considering the totality of facts of the case and the decisions of the jurisdictional ITAT in the case of Shankala Realtors (supra) and M/s jurisdictional ITAT in the case of Shankala Realtors (supra) and M/s jurisdictional ITAT in the case of Shankala Realtors (supra) and M/s Unique Shanti Neminath LLP (supra), I am of the opinion that the assessing Unique Shanti Neminath LLP (supra), I am of the opinion that the assessing Unique Shanti Neminath LLP (supra), I am of the opinion that the assessing officer has erred in recognizing the revenue for all flats ignoring the fact officer has erred in recognizing the revenue for all flats ignoring the fact officer has erred in recognizing the revenue for all flats ignoring the fact that in many cases, there w that in many cases, there was no legally enforceable agreement in the as no legally enforceable agreement in the form of agreement to sell. In the case of Shankala Realtors (supra), Hon'ble form of agreement to sell. In the case of Shankala Realtors (supra), Hon'ble form of agreement to sell. In the case of Shankala Realtors (supra), Hon'ble ITAT has held that revenue is required to be recognized at the time of ITAT has held that revenue is required to be recognized at the time of ITAT has held that revenue is required to be recognized at the time of Unique Shanti Developers LLP Unique Shanti Developers LLP 27 & 3902/MUM/2023 ITA Nos. 3856 & execution of agreements and the date of registration of agreement execution of agreements and the date of registration of agreement execution of agreements and the date of registration of agreements is immaterial. Accordingly, the Hon'ble ITAT had directed to bring to tax the immaterial. Accordingly, the Hon'ble ITAT had directed to bring to tax the immaterial. Accordingly, the Hon'ble ITAT had directed to bring to tax the revenue out of the agreements which were executed but remained to be revenue out of the agreements which were executed but remained to be revenue out of the agreements which were executed but remained to be registered. In the present case, the Assessing Officer has considered the registered. In the present case, the Assessing Officer has considered the registered. In the present case, the Assessing Officer has considered the total sale for Unique Aurum total sale for Unique Aurum-ll till 31/03/2016 at Rs. 35,14,30,000/ ll 31/03/2016 at Rs. 35,14,30,000/-. Against this amount, the assessee has considered the sale value at Rs. Against this amount, the assessee has considered the sale value at Rs. Against this amount, the assessee has considered the sale value at Rs. 20,06,01,000/- - for the purpose of computation of profit as per ICAl for the purpose of computation of profit as per ICAl guidelines 2012. The appellant has submitted complete details of guidelines 2012. The appellant has submitted complete details of guidelines 2012. The appellant has submitted complete details of remaining flats remaining flats having sale value of Rs. 15,08,29,000/- such as date of such as date of booking, date of agreement and year of revenue recognized in respect of booking, date of agreement and year of revenue recognized in respect of booking, date of agreement and year of revenue recognized in respect of the flats for which no revenue was recognized during the year under the flats for which no revenue was recognized during the year under the flats for which no revenue was recognized during the year under consideration even though the flats were booked by the cust consideration even though the flats were booked by the cust consideration even though the flats were booked by the customers. The said details are as under: said details are as under: |Statement of Flats Flats Booked before 3103.2016 but Revenue ue recognized In subsequent years years as per Percentage Completion on the basis of date of Completion on the basis of date of agreement Flat Name Agreement Date of Date of Revenue Recognition Revenue Recognition No. Value Booking Agreemen t A.Y2017- A.Y.2018- - A.Y.2019- A.Y.2020-21 18 19 20 Unique Aurum-II 203 Ritesh Gangwal & Jt. 28,80,000 08.09.11 14.08,18 23,61,60 5,18,400 205 Hemlata R. Singh & Jt. 49,05,000 10,04.14 20,06.19 40,22,100 0 8,82,900 208 Rachika Samaiya & Jt. 28,80,000 31.07.12 06.09.17 14,40,000 9,21,600 5,18,400 301 Prakash S Gadade & Jt 47,00,000 17.02.14 09.08.18 - 38,54,000 8,46,000 38,54,000 302 Nalin Chandra Pant 43,60,000 14.02.12 28.08.18 - 35,75,200 0 7,84,800 303 Bhamini J. Thakkar & Jt 28,80,000 31.07.12 28.05.18 - 23,61,600 5,18,400 23,61,600 401 Anil Fernandes 43,60,000 27.12.12 26.07.17 21,80,000 13,95,200 00 7,S4,800 402 Vandana Tiwari & Jt. 43,60,000 01.11.12 24.04.17 26.07.17 13,95,200 0 7,84,800 508 Dinesha Achuita Shetty 30,24,000 10.08.13 29.11.18 - 24,79,680 5,44,320 24,79,680 602 Gupta Vishal & J 54,50,000 30.10.15 14.12,18 - 44,69,000 9,81,000 44,69,000 708 Jugal C. Mascarenhas 32,80,000 17.02.14 20.06.14 16,40,000 10,43,600 10,43,600 5,90,400 902 Rajani B. Ranchooddas 43,60,000 07.08.12 06.11.17 - 35,75,200 7,84,800 35,75,200 904 Rambha Rakesh Singh 28,80,000 21.01.13 21.12.16 14,40,000 9,21,600 5,18,400 1003 Ajay Kumar Pandey & Jt. 36,00,000 03.11.13 18.08.18 - 29,52,000 6,48,000 29,52,000 1006 Nitin Palan & Jt. 43,60,000 27.06,17 29.06,17 - 35,75,200 0 7,84,800 1008 Sanjay Kulshrestha & Jt. 30,00,000 05.05.13 13.09.17 15,00,000 9,60,000 5,40,000 1104 Sheela R. Kalokh 29,54,000 13.09.13 23.12.14 15,48,000 9,90,720 4,15,280 1105 Rukmani J. Nadar 43,60,000 25.07.11 12.12.18 - 43,60,000 1201 Amit Jha & Jt 43,60,000 08.06.12 21.03.17 21,80,000 13,95,200 00 7,84,800 1202 Amit Jha & Jt. 43,60,000 08.06.12 21.03,17 21,80,000 13,95,200 13,95,200 7,84,800 1205 Mr. Amit Saha & Jt. 53,30,000 17.04.15 07,03,18 - 43,70,600 9,59,400 43,70,600 1206 Deepati R. Jaiswal & JT 49,50,000 01.10.15 31.07.18 - 8,91,000 1207 Miss. Rithisha J. Shetty & 28,00,000 23.12.11 30.06,18 - 22,96,000 5,04,000 22,96,000 Jt. 1208 Khushboo A. Dharadhar 28,00,000 16.08,12 20.02.18 22,96,000 000 5,04,000 1304 Bandhna Rangu & Jt. 28,80,000 12,09.11 29,06.17 14,40,000 9,21,600 5,18,400 1308 RakeshV.Shetty&t 34,20,000 20.01.14 19.06.17 17,10,000 10,94,400 10,94,400 6,15,600 Unique Shanti Developers LLP Unique Shanti Developers LLP 28 & 3902/MUM/2023 ITA Nos. 3856 & 1401 HrushikeshR.Deo& Jt. 43,60,000 12.08.11 29.09.18 35,75,200 7,84,800 35,75,200 1402 ShaileshKotadia&J 43,60,000 08.06.12 21.03.17 21,80,000 13,95,200 13,95,200 7,84,800 1405 Mr.UmeshH Pathak & Jt 43,60,000 01.03.12 13.03.18 21,80,000 13,95,200 13,95,200 7,84,800 1502 HarishKarande 43,60,000 07.02.12 07.03.17 21,80,000 13,95,200 13,95,200 7,84,800 1504 MaheshkumareMaurya 28,80,000 23.08.11 06.03.18 23,61,600 5,18,400 23,61,600 &Jt. 1505 NishantraiH Pandey&Jt 43,60,000 21.09.11 11.04.18 35,75,200 7,84,800 35,75,200 1508 ShardaR Thakur&Jt. 34,56,000 25.06.14 13.10.17 28,33,920 6,22,080 28,33,920 1605 MeenaK Ashar&Jt. 43,60,000 21.12.12 27.09.17 35,75,200 7,84,800 35,75,200 1701 PratimaR, Chavan&Jt 43,60,000 24.02.13 18.03.19 35,75,200 7,84,800 35,75,200 1703 AnushriA.Bandekar 28,80,000 08.08.11 19.08.19 23,61,600 5,18,400 23,61,600 1707 BhanuprasadNMewada&Jt. 28,80,000 25.05.12 14.11.17 23,61,600 5,18,400 23,61,600 1805 RampratapMistry 43,60,000 13.10.11 13.11.17 35,75,200 7,84,800 35,75,200 13.10.11 13.11.17 1806 DurgadeviMistry 43,60,000 35,75,200 7,84,800 35,75,200 TotalotUniqueAurum-ll 15,08,29,0 2,59,78,0 9,42,43,02 2,62,47,98 9,42,43,02 43,60,000 00 0 0 00

A perusal of above chart suggests that out of 39 A perusal of above chart suggests that out of 39 flats on which flats on which revenue has not been recognized by the appellant during the year, the agreement to has not been recognized by the appellant during the year, the agreement to has not been recognized by the appellant during the year, the agreement to sale was executed beyond 31/03/2016 in 37 cases. In case of flat no. 708 sale was executed beyond 31/03/2016 in 37 cases. In case of flat no. 708 sale was executed beyond 31/03/2016 in 37 cases. In case of flat no. 708 and flat no. 1104, agreement to sell was executed on 20/06/2014 and and flat no. 1104, agreement to sell was executed on 20/06/2014 and and flat no. 1104, agreement to sell was executed on 20/06/2014 and 23/12/2014. Since 23/12/2014. Since the agreement to sell in these two cases has been the agreement to sell in these two cases has been executed before 31/03/2016, therefore, in terms of the directions of executed before 31/03/2016, therefore, in terms of the directions of executed before 31/03/2016, therefore, in terms of the directions of Hon'ble ITAT in the case of Shankala Realtors, the revenue corresponding Hon'ble ITAT in the case of Shankala Realtors, the revenue corresponding Hon'ble ITAT in the case of Shankala Realtors, the revenue corresponding to these two flats is required to be recognized during the year to these two flats is required to be recognized during the year to these two flats is required to be recognized during the year under consideration. As per the details submitted by the appellant the sale consideration. As per the details submitted by the appellant the sale consideration. As per the details submitted by the appellant the sale consideration for these two flats is Rs. 62,34,000/ consideration for these two flats is Rs. 62,34,000/- (32,80,000 + 29,54,000). Since the project has been completed to the extent of 25.24%, 29,54,000). Since the project has been completed to the extent of 25.24%, 29,54,000). Since the project has been completed to the extent of 25.24%, therefore, the revenue to the extent of therefore, the revenue to the extent of Rs. 15,73,460/ Rs. 15,73,460/- (25.25% of 62,34,000) is required to be recognized during the year under 62,34,000) is required to be recognized during the year under 62,34,000) is required to be recognized during the year under consideration. For the project Unique Aurum consideration. For the project Unique Aurum-ll, the profit ratio as per ll, the profit ratio as per computation computation computation chart chart chart filed filed filed by by by the the the appellant appellant appellant comes comes comes to to to 21.34% 21.34% 21.34% (10703140/50150250), therefore, the p (10703140/50150250), therefore, the profit on such under reported rofit on such under reported revenue comes to Rs. 3,35,810/ revenue comes to Rs. 3,35,810/- (21.34% of 15,73,460).

Considering the totality facts of the case as discussed above and the 55. Considering the totality facts of the case as discussed above and the 55. Considering the totality facts of the case as discussed above and the decision of the jurisdictional ITAT in the case of Shankala Realtors (supra) decision of the jurisdictional ITAT in the case of Shankala Realtors (supra) decision of the jurisdictional ITAT in the case of Shankala Realtors (supra) and Unique Shanti Nem Unique Shanti Neminath Developers LLP (supra), I am of the opinion inath Developers LLP (supra), I am of the opinion that the assessing officer has erred in recognizing the revenue for all flats that the assessing officer has erred in recognizing the revenue for all flats that the assessing officer has erred in recognizing the revenue for all flats ignoring the fact that in many cases, there was no legally enforceable ignoring the fact that in many cases, there was no legally enforceable ignoring the fact that in many cases, there was no legally enforceable document in the form of agreement to sell. Moreover, the document in the form of agreement to sell. Moreover, the assessing officer assessing officer has not been consistent in the method adopted by him in AY 2016 has not been consistent in the method adopted by him in AY 2016 has not been consistent in the method adopted by him in AY 2016-17. However, as discussed above, the appellant was required to recognize However, as discussed above, the appellant was required to recognize However, as discussed above, the appellant was required to recognize revenue corresponding to flat no. 708 and 1104 during the year under revenue corresponding to flat no. 708 and 1104 during the year under revenue corresponding to flat no. 708 and 1104 during the year under consideration because the agreem consideration because the agreement to sell for these flats have been ent to sell for these flats have been executed before 31/03/2016. As discussed above, the profit on the executed before 31/03/2016. As discussed above, the profit on the executed before 31/03/2016. As discussed above, the profit on the Unique Shanti Developers LLP Unique Shanti Developers LLP 29 & 3902/MUM/2023 ITA Nos. 3856 & revenue to be recognized for these two flats comes to Rs. 3,35,810/ revenue to be recognized for these two flats comes to Rs. 3,35,810/ revenue to be recognized for these two flats comes to Rs. 3,35,810/-. Therefore, the addition to the extent of Rs. 3,35,810/ Therefore, the addition to the extent of Rs. 3,35,810/- is upheld. is upheld. Unique Signatur Unique Signature 56. This project was completed to the extent of 40.81%. the appellant has 56. This project was completed to the extent of 40.81%. the appellant has 56. This project was completed to the extent of 40.81%. the appellant has recognized revenue to the extent of 41% of sale value amounting to Rs. recognized revenue to the extent of 41% of sale value amounting to Rs. recognized revenue to the extent of 41% of sale value amounting to Rs. 14,71,66,310/- - which is corresponding to the flats for which sale which is corresponding to the flats for which sale agreement were registered before 31/03/2016 agreement were registered before 31/03/2016. The Assessing Officer did . The Assessing Officer did not agree with the appellant and had recognized the revenue for all flats not agree with the appellant and had recognized the revenue for all flats not agree with the appellant and had recognized the revenue for all flats booked by the customers. In this manner, the Assessing Officer has booked by the customers. In this manner, the Assessing Officer has booked by the customers. In this manner, the Assessing Officer has recognized the revenue to the extent of 40.81% of Rs. 27,61,64,720/ recognized the revenue to the extent of 40.81% of Rs. 27,61,64,720/ recognized the revenue to the extent of 40.81% of Rs. 27,61,64,720/- (sale value of all flats booked by customers). flats booked by customers).

The reasons given by the Assessing Officer for recognizing the revenue 57. The reasons given by the Assessing Officer for recognizing the revenue 57. The reasons given by the Assessing Officer for recognizing the revenue on all flats booked by the customer for project namely Unique Signature, on all flats booked by the customer for project namely Unique Signature, on all flats booked by the customer for project namely Unique Signature, are identical to the reasons given for the project namely Unique Aurum are identical to the reasons given for the project namely Unique Aurum are identical to the reasons given for the project namely Unique Aurum-Il. During the assessment proceedings, as well as appellate proceedings, the ng the assessment proceedings, as well as appellate proceedings, the ng the assessment proceedings, as well as appellate proceedings, the appellant has given common contentions for all the three projects which appellant has given common contentions for all the three projects which appellant has given common contentions for all the three projects which have been discussed earlier in this order. Therefore, following my findings have been discussed earlier in this order. Therefore, following my findings have been discussed earlier in this order. Therefore, following my findings given for the project namely Unique Aur given for the project namely Unique Aurum-ll, it is held that the revenue ll, it is held that the revenue should be recognized only for those flats where legally enforceable should be recognized only for those flats where legally enforceable should be recognized only for those flats where legally enforceable document in the form of agreement to sell has been entered into before document in the form of agreement to sell has been entered into before document in the form of agreement to sell has been entered into before 31/03/2016.

For this project, the Assessing Officer has considered the total s 58. For this project, the Assessing Officer has considered the total s 58. For this project, the Assessing Officer has considered the total sale for Unique Signature till 31/03/2016 at Rs. 27,61,64,720/ Unique Signature till 31/03/2016 at Rs. 27,61,64,720/ Unique Signature till 31/03/2016 at Rs. 27,61,64,720/- against the amount of Rs. 14,71,66,310/ amount of Rs. 14,71,66,310/- considered by the assessee, for the purpose considered by the assessee, for the purpose of computation of profit as per ICAl guidelines 2012. The appellant has of computation of profit as per ICAl guidelines 2012. The appellant has of computation of profit as per ICAl guidelines 2012. The appellant has submitted complete details of remain submitted complete details of remaining flats having sale value of Rs. ing flats having sale value of Rs. 12,89,98,410/- -such as date of booking, date of agreement and year of such as date of booking, date of agreement and year of revenue recognized in respect of the flats for which no revenue was revenue recognized in respect of the flats for which no revenue was revenue recognized in respect of the flats for which no revenue was recognized during the year under recognized during the year under consideration even though the flats were consideration even though the flats were booked by the customers. The said details are as under: the customers. The said details are as under: Flat No. Agreement Agreement Date of Date of Revenue Recognition Name Value Booking Agreemen t A.Y2017- A.Y.2018 A.Y.2019- A.Y.2019 A.Y.2020 AY 2021- 18 -19 20 20 -21 22 Unique Signature 104 Harpal Singh Gulati 47,30,000 47,30,000 19.06.14 20.02.17 25,06,900 8,04,100 1,89,200 1,89,200 7,09,500 5,20,300 105 Mr. Harpal Singh 47,30,000 47,30,000 19.06.14 13.12.17 - 33,11,00 1,89,200 1,89,200 7,09,500 5,20,300 Gulati 0 201 Mrs. Naseem Bano 49,21,800 49,21,800 07.11.14 10.07.18 - 34,45,26 12,96,872 12,96,872 7,38,270 5,41,398 Shaikh 0 304 Mrs. Kamini Kaur & 46,26,150 46,26,150 06.08.14 28.05.18 - 32,38,30 1,85,046 1,85,046 6,93,923 5,08,876 Jt. 5 305 Mrs. Kamini Kaur & 46,26,150 46,26,150 06.08.14 28.05.18 - 32,38,30 1,85,046 1,85,046 6,93,923 5,08,876 Jt. 5 306 Mrs. Shabbana Aamir 70,45,100 70,45,100 12.07.15 23.11.16 37,33,903 11,97,66 2,81,804 2,81,804 10,56,76 7,74,961 Chikte & Jt. 7 5 Unique Shanti Developers LLP Unique Shanti Developers LLP 30 & 3902/MUM/2023 ITA Nos. 3856 & 404 Mr. Ayaz Abdul Kadar 49,94,070 49,94,070 13.11.14 16.02.18 - 34,95,84 1,99,763 1,99,763 7,49,110 5,49,348 Shaikh & Jt. 9 405 Mr. Azam Hussain 49,13,840 49,13,840 20.05.14 23.01.18 - 34,39,68 1,96,554 1,96,554 7,37,076 5,40,522 Qazi Syed 8 505 Mr. Aabid Husain 45,56,800 45,56,800 20.12.14 30.12.21 - 31,89,76 1,82,272 1,82,272 6,83,520 5,01,248 Patrawala 0 601 Mr. Ashif T. Sorathiya 49,28,370 49,28,370 05.09.14 24.04.18 - 34,49,85 1,97,135 1,97,135 7,39,255 5,42,121 & Jt. 9 602 Mr. Terry D’souza & 63,68,660 63,68,660 27.06.14 07.02.23 - 44,58,06 2,54,746 2,54,746 9,55,299 7,00,553 Jt. 2 701 Mr. Deepak Singh & 5,20,350 31.10.14 12.07.17 26,60,786 8,53,460 2,00,814 2,00,814 7,53,053 5,52,238 Jt. 706 Mr. Mohammed 44,95,000 44,95,000 15.09.11 13.01.17 23,82,350 7,64,150 1,79,800 1,79,800 6,74,250 4,94,450 Taiyeb Bhoira 805 Mr. Tarashankar 31,16,750 31,16,750 09.07.11 22.04.12 16,51,878 5,29,848 1,24,670 1,24,670 4,67,513 3,42,842 Singh 906 Mr. Shaikh Rafique 70,56,000 70,56,000 01.02.16 30.06.17 37,39,680 11,99,52 2,82,240 2,82,240 10,58,40 7,76,160 Ahmed & Jt. 0 0 1001 Smt. Sapna O. Pandit 50,59,770 50,59,770 09.12.14 14.02.18 - 35,41,83 2,02,391 2,02,391 7,58,965 5,65,575 & Jt. 9 1005 Mrs. Rajeshwari N. 50,79,480 50,79,480 31.10.14 17.06.17 26,92,124 8,63,512 2,03,179 2,03,179 7,61,922 5,58,743 Singh 1101 Farha Abdul Hameed 51,20,360 51,20,360 28.07.14 28.07.17 27,13,791 8,70,461 2,04,814 2,04,814 7,68,054 5,63,240 Shaikh 1104 Mr. Iqubal Ahmed 51,18,000 51,18,000 23.12.15 21.09.16 27,12,540 8,70,060 2,04,720 2,04,720 7,67,700 5,62,980 Abdul Lateef & Jtd. 1205 Miss. Sarah Melital 51,14,520 51,14,520 28.05.14 07.11.17 - 35,80,16 2,04,581 2,04,581 7,67,178 5,62,597 Lobo 4 1304 Mr. Rakesh Sequeira 51,78,030 51,78,030 28.07.14 24.07.17 27,44,356 8,80,265 2,07,121 2,07,121 7,76,705 5,69,583 & Jt. 1305 Mohamad Abdul 45,38,720 45,38,720 25.05.15 10.08.16 22,06,947 8,43,407 1,98,449 1,98,449 7,44,183 5,45,734 Rehman 1404 Mr. Faizanl. 51,18,900 51,18,900 01.07.14 27.04.17 - 35,83,23 2,04,756 2,04,756 7,67,835 5,63,079 Choudhry 0 1405 Mr. Raj Kumar & Jt. 51,53,940 51,53,940 22.03.16 27.04.17 27,31,588 8,76,170 2,06,158 2,06,158 7,73,091 5,66,933 1505 Mr. Sajid Kachhi 47,35,650 47,35,650 12.09.14 23.03.17 25,09,895 8,05,061 1,89,426 1,89,426 7,10,348 5,20,921 Shop Mohammed 26,52,000 26,52,000 26.02.16 28.03.17 14,05,560 4,50,840 1,06,080 1,06,080 2,91,720 No. 5 Khajamohd Haji & Jt. Total of Unique 12,89,98,410 12,89,98,410 3,63,92,2 5377984 51,76,837 51,76,837 1,94,13,1 1,42,36298 Signature 98 2 38

A perusal of above chart suggests that out of 26 flats A perusal of above chart suggests that out of 26 flats on which revenue on which revenue has not been recognized during the year, the agreement to sale was has not been recognized during the year, the agreement to sale was has not been recognized during the year, the agreement to sale was executed beyond 31/03/2016 in 25 cases. In case of flat no. 805, executed beyond 31/03/2016 in 25 cases. In case of flat no. 805, executed beyond 31/03/2016 in 25 cases. In case of flat no. 805, agreement to sell was executed on 22/04/2012. Since the agreement to agreement to sell was executed on 22/04/2012. Since the agreement to agreement to sell was executed on 22/04/2012. Since the agreement to sell has been executed before 31/03/20 sell has been executed before 31/03/2016, therefore, in terms of the 16, therefore, in terms of the directions of Hon'ble ITAT in the case of Shankala Realtors (supra), the directions of Hon'ble ITAT in the case of Shankala Realtors (supra), the directions of Hon'ble ITAT in the case of Shankala Realtors (supra), the revenue corresponding to flat no. 805, is required to be recognized during revenue corresponding to flat no. 805, is required to be recognized during revenue corresponding to flat no. 805, is required to be recognized during the year under consideration. the year under consideration. As per the details submitted by the As per the details submitted by the appellant, the sale consideration for this flat is Rs. 31,16,750/ the sale consideration for this flat is Rs. 31,16,750/ the sale consideration for this flat is Rs. 31,16,750/-. Since the project has been completed to the extent of 40.81%, therefore, the revenue project has been completed to the extent of 40.81%, therefore, the revenue project has been completed to the extent of 40.81%, therefore, the revenue to the extent of Rs. 12,71,945/ to the extent of Rs. 12,71,945/- (40.81% of 31,16,750) is required to be 31,16,750) is required to be recognized during the year under consider recognized during the year under consideration.

Considering the totality of facts of the case as discussed above and the nsidering the totality of facts of the case as discussed above and the nsidering the totality of facts of the case as discussed above and the decision of the jurisdictional ITAT in the case of Shankala Realtors (supra) decision of the jurisdictional ITAT in the case of Shankala Realtors (supra) decision of the jurisdictional ITAT in the case of Shankala Realtors (supra) and Unique Shanti Neminath Developers LLP (supra), I am of the opinion Unique Shanti Neminath Developers LLP (supra), I am of the opinion Unique Shanti Neminath Developers LLP (supra), I am of the opinion ring the assessing officer has erred ring the assessing officer has erred in recognizing the revenue for all flats in recognizing the revenue for all flats ignoring the fact that in many cases, there was no legally enforceable ignoring the fact that in many cases, there was no legally enforceable ignoring the fact that in many cases, there was no legally enforceable document in the form of agreement to sell. Moreover, the assessing officer document in the form of agreement to sell. Moreover, the assessing officer document in the form of agreement to sell. Moreover, the assessing officer has not been consistent in the method adopted by him in AY 2016 has not been consistent in the method adopted by him in AY 2016 has not been consistent in the method adopted by him in AY 2016-17. However, as discussed above, the appellant was required to recognize owever, as discussed above, the appellant was required to recognize owever, as discussed above, the appellant was required to recognize revenue corresponding to flat no. 805 of Unique Signature project during revenue corresponding to flat no. 805 of Unique Signature project during revenue corresponding to flat no. 805 of Unique Signature project during the year under consideration because the agreement to sell for this flat has the year under consideration because the agreement to sell for this flat has the year under consideration because the agreement to sell for this flat has been executed before 31/03/2016. As di been executed before 31/03/2016. As discussed above, the profit on the scussed above, the profit on the revenue to be recognized for this flat comes to Rs. 2,87,743/ revenue to be recognized for this flat comes to Rs. 2,87,743/ revenue to be recognized for this flat comes to Rs. 2,87,743/-. Therefore, the addition to the extent of Rs. 2,87,743/ the addition to the extent of Rs. 2,87,743/- is upheld. Unique Homes Unique Homes 61. For the project namely Unique Homes, there is no dispute that the 61. For the project namely Unique Homes, there is no dispute that the 61. For the project namely Unique Homes, there is no dispute that the project was completed to the extent of 28%. The appellant has however as completed to the extent of 28%. The appellant has however as completed to the extent of 28%. The appellant has however claimed that only 13.13% of total area is secured by legally enforceable claimed that only 13.13% of total area is secured by legally enforceable claimed that only 13.13% of total area is secured by legally enforceable agreements. The appellant, therefore, did not recognize any revenue form agreements. The appellant, therefore, did not recognize any revenue form agreements. The appellant, therefore, did not recognize any revenue form this project because the condition that at least this project because the condition that at least 25% of project areashould 25% of project areashould be secured by legally enforceable agreements, is not fulfilled. Against this, be secured by legally enforceable agreements, is not fulfilled. Against this, be secured by legally enforceable agreements, is not fulfilled. Against this, the Assessing Officer has held that percentage of total area sold by the the Assessing Officer has held that percentage of total area sold by the the Assessing Officer has held that percentage of total area sold by the appellant comes to 36.62%. appellant comes to 36.62%. While computing this percentage, the While computing this percentage, the Assessing Offic Assessing Officer has considered all the flats in which more than 10% of er has considered all the flats in which more than 10% of sale consideration has been received irrespective of execution of agreement sale consideration has been received irrespective of execution of agreement sale consideration has been received irrespective of execution of agreement to sell. The Assessing Officer has considered the booking form/allotment to sell. The Assessing Officer has considered the booking form/allotment to sell. The Assessing Officer has considered the booking form/allotment letter as legally enforceable agreement. letter as legally enforceable agreement.

The reasons reasons reasons given given given by by by the the the Assessing Assessing Assessing Officer Officer Officer for for for holding holding holding booking/allotment letter as legally enforceable agreement and for booking/allotment letter as legally enforceable agreement and for booking/allotment letter as legally enforceable agreement and for recognizing the revenue on all flats booked by the customer for project recognizing the revenue on all flats booked by the customer for project recognizing the revenue on all flats booked by the customer for project namely Unique Homes, are identical to the reasons given for the pro namely Unique Homes, are identical to the reasons given for the pro namely Unique Homes, are identical to the reasons given for the project namely Unique Aurum namely Unique Aurum-ll. During the assessment proceedings, as well as ll. During the assessment proceedings, as well as appellate proceedings, the appellant has given common contentions for all appellate proceedings, the appellant has given common contentions for all appellate proceedings, the appellant has given common contentions for all the three projects which have been discussed earlier in this order. the three projects which have been discussed earlier in this order. the three projects which have been discussed earlier in this order. Therefore, following my findings given Therefore, following my findings given for the project namely Unique for the project namely Unique Aurum-ll, it is held that the only area for those flats can be considered as ll, it is held that the only area for those flats can be considered as ll, it is held that the only area for those flats can be considered as secured by legally enforceable agreement where document in the form of secured by legally enforceable agreement where document in the form of secured by legally enforceable agreement where document in the form of agreement to sell has been entered into before 31/03/2016. agreement to sell has been entered into before 31/03/2016. agreement to sell has been entered into before 31/03/2016.

For this projec 63. For this project, the Assessing Officer has considered the total sale for t, the Assessing Officer has considered the total sale for ansi die Unique Homes till 31/03/2016 at Rs. 16,14,10,860/ ansi die Unique Homes till 31/03/2016 at Rs. 16,14,10,860/ ansi die Unique Homes till 31/03/2016 at Rs. 16,14,10,860/- against the amount of Rs. Nil considered by the assessee, for the purpose of amount of Rs. Nil considered by the assessee, for the purpose of computation of profit as per ICAI guidelines 2012. The appel computation of profit as per ICAI guidelines 2012. The appel computation of profit as per ICAI guidelines 2012. The appellant has submitted complete details of these flats having sale value of Rs. submitted complete details of these flats having sale value of Rs. submitted complete details of these flats having sale value of Rs. 16,14,10,860/- - such as date of booking, date of agreement and year of such as date of booking, date of agreement and year of revenue recognized in respect of these flats for which no revenue was revenue recognized in respect of these flats for which no revenue was revenue recognized in respect of these flats for which no revenue was Unique Shanti Developers LLP Unique Shanti Developers LLP 32 & 3902/MUM/2023 ITA Nos. 3856 & recognized during the year under conside recognized during the year under consideration even though the flats were ration even though the flats were booked by the customers. The said details are as under: booked by the customers. The said details are as under:- Flat No. Name Agreement Agreement Date of Date of Revenue Recognition Value Booking Agreeme nt A.Y2017- A.Y.2018 A.Y.2019- A.Y.2019 A.Y.2020- AY 2021- 18 -19 20 20 21 22 Unique Signature A-103 Sheela O. Balmiki & Jt. 33,48,810 33,48,810 11.04.13 01.03.19 - - 13,39,524 13,39,524 9,37,667 2,00,928 A-104 Shambuling B. Badegar 22,23,000 22,23,000 14.02.13 12.10.20 - - - 15,11,640 1,33,380 A-105 Rita Singh w/o Amit 23,42,925 23,42,925 15.01.13 14.10.19 - - 9,37,170 9,37,170 6,56,019 1,40,576 Kumar A-302 Jyoti A. Bataviya & Jt. 35,64,450 35,64,450 16.01.13 13.11.18 - - 14,25,780 14,25,780 9,98,046 2,13,867 A-306 Mrs. Neeta S. Dave 33,04,375 33,04,375 21.09.13 - - - 23,82,975 2,10,263 A-502 Chetan S. Gadoya & Jt 35,64,450 35,64,450 12.04.13 20.04.19 - - 14,25,780 14,25,780 9,98,046 2,13,867 A-503 Nikita U. Thakkar & Jt. 31,43,925 31,43,925 24.12.12 11.06.14 9,74,617 1,88,636 94,317 94,317 8,80,299 1,88,636 A-504 Morris John D’souza 23,42,925 23,42,925 21.01.13 13.10.14 7,26,307 1,40,576 70,287 70,287 6,56,019 1,40,576 A-505 Praveen Kumar Yadav 23,42,925 23,42,925 24.01.13 09.10.19 - - - 15,93,189 1,40,576 & Jt. A-506 Laila N. Pirani 35,04,375 35,04,375 15.02.14 16.05.15 10,86,356 2,10,263 1,05,131 1,05,131 9,81,225 2,10,263 A-705 Priya M. Gupa 21,06,000 21,06,000 27.12.12. 18.02.19 - - 8,42,400 8,42,400 8,89,680 1,26,360 A-706 Hiteshree V. Shrimakar 35,04,375 35,04,375 12.01.13 05.07.19 - - 14,01,750 14,01,750 9,81,225 2,10,263 A-707 Mamta Ashwin Parikh 35,04,375 35,04,375 12.01.13 - - - 23,82,975 2,10,263 A-901 Kulsum Akbar Somani 35,64,450 35,64,450 05.02.13 - - - 24,23,826 2,13,867 A-902 Rafiq Vazirbhail 35,64,450 35,64,450 28.01.13 02.05.16 11,04,980 2,13,867 1,06,933 1,06,933 9,98,046 2,13,867 Lagadia & Jt. A-903 Sachin H. Savla 31,43,925 31,43,925 27.03.14 26.10.18 - - 12,57,570 12,57,570 8,80,299 1,88,636 A-904 Dwarka Swarup Simlot 22,42,925 22,42,925 08.01.13 17.02.21 - - - 15,93,189 1,40,576 A-905 Rajesh Jain 23,42,925 23,42,925 08.01.13 26.06.14 7,26,307 1,40,576 70,287 70,287 6,56,019 1,40,576 A-1102 Veena Ashok Gala 25,64,450 25,64,450 09.10.14 15.10.19 - - - 24,23,826 2,13,867 A-1103 Mr. Bhupinder Singh 31,43,925 31,43,925 04.02.13 18.06.14 9,74,617 1,88,636 94,317 94,317 8,80,299 1,88,636 Sethi & Jt. A-1104 Mr. Akbar R. Somani 23,42,925 23,42,925 05.02.13 - - - 15,93,189 1,40,576 A-1105 Jayshree Atul Mehta 23,42,925 23,42,925 18.01.13 11.01.19 - - 9,37,170 9,37,170 6,56,019 1,40,576 A-1106 Ranjan Satish Gala & 35,04,375 35,04,375 12.02.16 27.05.19 - - 14,01,750 14,01,750 9,81,225 2,10,263 Jt. A-1107 Mrs. Sandhya Anand 35,04,375 35,04,375 05.01.13 20.01.01 - 12,96,61 1,05,131 1,05,131 9,81,225 2,10,263 Kumar Gautam 7 9 Unique Homes – B B-101 Pawan Kumar Mishra & 24,00,840 24,00,840 07.02.14 13.11.14 7,44,260 (7,44,260 9,60,336 9,60,336 6,72,325 1,44,051 Jt. ) B-102 Rizwan Bahuali 23,42,925 23,42,925 04.09.13 08.02.17 7,26,307 1,40,576 70,287 70,287 6,56,019 1,40,576 Zamindar B-104 Mr. Virendra Kandari 23,42,925 23,42,925 09.10.13 25.11.20 - - - 15,93,189 1,40,576 B-106 Mr. Imran Irfan Khan 34,44,300 34,44,300 04.09.13 20.02.17 10,67,733 2,06,658 1,03,329 1,03,329 9,64,404 2,06,658 B-303 Mr. Saroj D. Tripathi 23,42,925 23,42,925 15.09.13 20.12.14 7,26,307 1,40,576 70,287 70,287 6,56,019 1,40,576 B-305 Mr. Chandra 25,63,200 25,63,200 14.10.13 15.12.18 - - 10,25,280 10,25,280 7,17,696 1,53,792 Bhanjadhwani B-306 Mr. Kundan Mal Goyal 34,44,300 34,44,300 08.10.13 - - - 23,42,124 2,06,658 B-501 Mr. Rajesh I. Yadav 23,42,925 23,42,925 30.08.13 02.03.16 7,26,307 1,40,576 70,287 70,287 6,56,019 1,40,576 Unique Shanti Developers LLP Unique Shanti Developers LLP 33 & 3902/MUM/2023 ITA Nos. 3856 & B-502 Mr. Imran Irfan Khan 23,42,925 23,42,925 04.09.13 08.02.17 7,26,307 1,40,576 70,287 70,287 6,56,019 1,40,576 B-503 Mrs. Neha Jigish 23,42,925 23,42,925 30.08.13 13.11.18 - - 9,37,170 9,37,170 6,56,019 1,40,576 Chiniwala & Jt. B-504 Trupti A. Ghelani & Jt. 23,42,925 23,42,925 30.08.13 06.09.18 - 8,66,882 70,288 70,288 6,56,019 1,40,576 B-506 Mrs. Renu Gupta 34,44,300 34,44,300 01.09.13 - - - 23,42,124 2,06,658 B-701 Mr. Rajiv Kishore 23,42,925 23,42,925 30.12.14 - - - 15,93,189 1,40,576 Gadda B-702 Mr. Shivkumar K. Pal 23,42,925 23,42,925 30.08.13 18.10.18 - - 9,37,170 9,37,170 6,56,019 1,40,576 B-703 Mr. Harish Koliyar 23,42,925 23,42,925 19.09.13 12.11.18 - - 9,37,170 9,37,170 6,56,019 1,40,576 B-704 Jasmine C. Rathod & 23,42,925 23,42,925 17.09.13 27.06.19 - - 9,37,170 9,37,170 6,56,019 1,40,576 Jt. B-705 Mr. Rajiv B. Bhandari & 25,63,200 25,63,200 30.08.13 06.10.18 - - 10.25,280 10.25,280 7,17,696 1,53,792 Jt. B-901 Mr. Uday Kantilal 23,42,925 23,42,925 17.09.13 - - - 15,93,189 1,40,576 Somani & Jt. B-905 Rekha Deepak Patel & 25,63,200 25,63,200 17.09.13 26.06.14 7,94,592 1,53,792 76,896 76,896 7,17,696 1,53,792 Jt. B-1101 Mr. Arun Kumar 23,42,925 23,42,925 14.09.13 05.07.14 7,26,307 1,40,576 70,287 70,287 6,56,019 1,40,576 Agarwal B-1102 Mr. Arun Kumar 23,42,925 23,42,925 14.09.13 05.07.14 7,26,307 1,40,576 70,287 70,287 6,56,019 1,40,576 Agarwal B-1105 Jaykumar R. Patel & Jt. 25,63,200 25,63,200 19.09.13 09.10.20 - - - 17,42,976 1,53,792 13,15,90,350 Cancelled Flats UH A-501 Mr. Puriben Devabhai 35,64,450 35,64,450 02.02.13 Not Done Patel & Jt. A-906 Sanjeeva Shetty 35,04,375 35,04,375 02.05.13 Not Done A-105 Hema Jitendra Desai & 26,26,560 26,26,560 12.02.14 Not Done Jt. B-301 Mrs. Raminder A 23,42,560 23,42,560 14.09.13 Not Done Sablok B-302 Mr. Rajesh Vijay Dubey 23,42,925 23,42,925 30.08.13 Not Done B-304 Mr. Sanjeev J. Parker & 23,42,925 23,42,925 30.08.13 Not Done Jt. B-505 Mr. Yatin Manani & Jt. 25,63,200 25,63,200 19.09.13 Not Done B-902 Mr. Vipul G. Belani 23,42,925 23,42,925 08.09.13 Not Done B-1202 Mr. Ajay R. Verma & Jt. 23,42,925 23,42,925 04.09.13 Not Done B-1204 Mrs. Aarti R. Verma & 23,42,925 23,42,925 04.09.13 Not Done Jt.

It is further seen that out of remaining 47 flats, agreement to sell in 12 It is further seen that out of remaining 47 flats, agreement to sell in 12 It is further seen that out of remaining 47 flats, agreement to sell in 12 cases were entered into before 31/03/2016. The details of area for these cases were entered into before 31/03/2016. The details of area for these cases were entered into before 31/03/2016. The details of area for these flatswere furnished by the appellant during the assessment proceedings flatswere furnished by the appellant during the assessment proceedings flatswere furnished by the appellant during the assessment proceedings Unique Shanti Developers LLP Unique Shanti Developers LLP 34 & 3902/MUM/2023 ITA Nos. 3856 & along with reply dated 15.12.2018 wh along with reply dated 15.12.2018 which is 8070 sq. ft. Since the carpet ich is 8070 sq. ft. Since the carpet area of the project secured by legally enforceable agreement to sell is less area of the project secured by legally enforceable agreement to sell is less area of the project secured by legally enforceable agreement to sell is less than 25% of the total area of the project, therefore, the condition (c) of para than 25% of the total area of the project, therefore, the condition (c) of para than 25% of the total area of the project, therefore, the condition (c) of para 5.3 of guidance note is not fulfilled. Hence, as per the guida 5.3 of guidance note is not fulfilled. Hence, as per the guidance note issued nce note issued by ICAl, no revenue for the project namely Unique Homes is required to be by ICAl, no revenue for the project namely Unique Homes is required to be by ICAl, no revenue for the project namely Unique Homes is required to be recognized during the year under consideration. Therefore, the action of recognized during the year under consideration. Therefore, the action of recognized during the year under consideration. Therefore, the action of the Assessing Officer in recognizing the revenue amounting to Rs. the Assessing Officer in recognizing the revenue amounting to Rs. the Assessing Officer in recognizing the revenue amounting to Rs. 4,50,60,551/- for the project Unique Homes is erroneous. It is not out of ct Unique Homes is erroneous. It is not out of place to mention that the appellant has recognized revenue from this place to mention that the appellant has recognized revenue from this place to mention that the appellant has recognized revenue from this project in subsequent assessment year as tabulated above which have project in subsequent assessment year as tabulated above which have project in subsequent assessment year as tabulated above which have been accepted by the assessing officer in assessments for subsequent been accepted by the assessing officer in assessments for subsequent been accepted by the assessing officer in assessments for subsequent years.

To sum up, out of the addition of Rs. 2,62,17,851/ 65. To sum up, out of the addition of Rs. 2,62,17,851/- - made by the Assessing Officer by treating the booking forms/allotment letters as legally Assessing Officer by treating the booking forms/allotment letters as legally Assessing Officer by treating the booking forms/allotment letters as legally enforceable agreement, addition to the extent of Rs. 6,23,553/ enforceable agreement, addition to the extent of Rs. 6,23,553/ enforceable agreement, addition to the extent of Rs. 6,23,553/- (3,35,810 + 2,87,743) is confirmed. The rem 2,87,743) is confirmed. The remaining addition is directed to be deleted. aining addition is directed to be deleted. The ground no. 3 raised by the appellant is PARTLY ALLOWED. The ground no. 3 raised by the appellant is PARTLY ALLOWED. The ground no. 3 raised by the appellant is PARTLY ALLOWED.” 7.2 We have heard rival submissions and perused the finding of ld have heard rival submissions and perused the finding of ld have heard rival submissions and perused the finding of ld CIT(A) reproduced above. We CIT(A) reproduced above. We concur with the finding of the Ld. concur with the finding of the Ld. CIT(A) for considering CIT(A) for considering the transfer of risk and reward and revenue the transfer of risk and reward and revenue to the buyer at the stage of entering into a registered sale agreement to the buyer at the stage of entering into a registered sale agreement to the buyer at the stage of entering into a registered sale agreement as held by the Co-ordinate Bench of the Tribunal in the case of ordinate Bench of the Tribunal in the case of ordinate Bench of the Tribunal in the case of Sankalp Realtors Pvt. Ltd. (supra). We find that the Ld. CIT(A) has Sankalp Realtors Pvt. Ltd. (supra). We find that the Ld. CIT(A) has Sankalp Realtors Pvt. Ltd. (supra). We find that the Ld. CIT(A) has thoroughly examined all the allotment letters and sale agreements y examined all the allotment letters and sale agreements y examined all the allotment letters and sale agreements and thereafter, he upheld the addition to the extent of he upheld the addition to the extent of he upheld the addition to the extent of Rs.3,35,180/- (paragraph 55) in respect of project namely (paragraph 55) in respect of project namely (paragraph 55) in respect of project namely ‘Unique Aurum-II’. Similarly, in respect of project namely . Similarly, in respect of project namely ‘Unique Signature Unique Signature’ also the Ld. CIT(A) verified the allotment/sale agreements entered e Ld. CIT(A) verified the allotment/sale agreements entered e Ld. CIT(A) verified the allotment/sale agreements entered into with the buyers and upheld the addition to the extent of into with the buyers and upheld the addition to the extent of into with the buyers and upheld the addition to the extent of Rs.2,87,743/-. In this manner Ld. CIT(A) has upheld the . In this manner Ld. CIT(A) has upheld the . In this manner Ld. CIT(A) has upheld the disallowance to the extent of Rs.6,23,553/ disallowance to the extent of Rs.6,23,553/- (Rs.3,35,810/ (Rs.3,35,810/- + 2,87,743/-). In our opinion, the finding of the ld CIT(A) on the issue ur opinion, the finding of the ld CIT(A) on the issue ur opinion, the finding of the ld CIT(A) on the issue in dispute is well reasoned and w in dispute is well reasoned and we don’t find any infirmity in the e don’t find any infirmity in the Unique Shanti Developers LLP Unique Shanti Developers LLP 35 & 3902/MUM/2023 ITA Nos. 3856 & finding of ld CIT(A) on the issue in dispute. finding of ld CIT(A) on the issue in dispute. Accordingly, we uphold Accordingly, we uphold the finding of the Ld. CIT(A). T the finding of the Ld. CIT(A). The ground No. 2 of the appeal of he ground No. 2 of the appeal of the Revenue is accordingly dismissed. Revenue is accordingly dismissed.

In the result, the appeal of the assessee In the result, the appeal of the assessee is dismissed whereas is dismissed whereas the appeal of Revenue is partly allowed for statistical purpose. the appeal of Revenue is partly allowed for statistical purpose. the appeal of Revenue is partly allowed for statistical purpose.