INCOME TAX OFFICER - 14(3)(1), MUMBAI , MUMBAI vs. TRENDSETTER CONSTURCTIONS PVT LTD , RAJKAMAL CST ROAD KALINA MUMB

Facts

The revenue filed an appeal against the order of the CIT(A) who allowed the assessee's appeal. The assessee company received Rs. 2,79,00,000 from M/s. A. A. Estate Pvt. Ltd. for professional and technical services, which was not offered for taxation. The AO treated this as business income and allowed expenses, adding the net amount to the assessee's income.

Held

The Tribunal noted that the appellant's own case for multiple assessment years, as well as decisions from the Mumbai High Court, have consistently held that the assessee was not engaged in real estate development but acted as a consultant, earning commission. Amounts received before project completion were considered deposits.

Key Issues

Whether the receipts from M/s. A. A. Estate Pvt. Ltd. are to be treated as professional fees taxable as business income or as commission/deposits based on past precedents.