DCIT, CENTRAL CIRCLE 1, RAJKOT, RAJKOT vs. BUILDCON CREATIONS LLP, RAJKOT

ITA 678/RJT/2024Status: DisposedITAT Rajkot27 February 2026AY 2021-22Bench: DR. ARJUN LAL SAINI (Accountant Member), DR. DINESH MOHAN SINHA (Judicial Member)23 pages
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What did the Tribunal hold?

The Tribunal held that unaccounted profit from 'on-money' receipts should be taxed in the year the sale deed is executed, not when the 'on-money' was received. They dismissed the revenue's grounds on this matter.

What were the facts?

The assessee, a real estate developer, had unaccounted receipts related to a project. A search operation revealed these transactions, leading to reassessment proceedings. The Assessing Officer estimated profit at 16% on these receipts.

What were the issues?

The key issues were whether the 'on-money' receipts should be taxed in the year of receipt or sale deed execution, and the appropriate profit estimation for real estate developers.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 147,Section 148,Section 142(1),Section 151

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Buildcon Creations LLP IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT

BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND DR. DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं./ITA Nos. 539 to 542/RJT/2024 (Assessment Year: 2019-20 to 2022-23) (Hybrid Hearing) Central Circle-1 Raiya Main Road, Near Salus Rajkot Hospital, Rajkot, Gujarat 360007 "ायीलेखासं./जीआइआरसं./PAN/GIR No.: AASFB7723K (अपीलाथ"/Appellant) (""थ"/Respondent)

आयकर अपील सं./ITA Nos. 676 to 679/RJT/2024 (Assessment Year: 2019 to 20 to 2022-23) (Hybrid Hearing) Central Circle-1 Trinaty Tower Ground Floor, Rajkot Raiya Main Road, Near Salus Hospital, Rajkot, Gujarat 360007

"ायीलेखासं./जीआइआरसं./PAN/GIR No.: AASFB7723K (अपीलाथ"/Appellant) (""थ"/Respondent)

िनधा"रतीकीओरसे/Assessee by : Shri D.M. Rindani / Ms. Devina Patel, Ld. AR राज"कीओरसे/Revenue by : Shri Sanjay Punglia, CIT-DR सुनवाईकीतारीख/ Date of Hearing : 07/01/2026 घोषणाकीतारीख/Date of Pronouncement : 27/02/2026

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