ACIT v. National Builders

137 ITD 227Income Tax Appellate Tribunal2012#10829 most cited

What is ACIT v. National Builders authority for?

Revenue recognition under project completion method is permissible if the outcome of the contract can be estimated reliably. Until an enforceable transaction occurs, no profit can be recognized, even if advances are received.

10

judgments rely on this decision, according to BharatTax’s citation analysis of 366,314 Indian tax judgments — from 2016 to 2023.

Also referred to as

ACIT vs National Builders · project completion method · revenue recognition · enforceable transaction · advances received · AS-7 · profit recognition · section 145

Issues it is cited on

section 2(7)section 132(2)section 132(1)(a)section 145(1)section 153(a)(1)section 250(1)section 45(2)section 211project completion methodsection 145(2)jdasection 52

Judgments citing ACIT v. National Builders

DCIT, New Delhi vs. M/S. Sahara India Power Corporation Ltd., Pune

In the result, the appeal filed by the revenue for the AY 2005-06 in I

ITA 5067/DEL/2013[2005-06]Status: PendingITAT Delhi28 Apr 2023AY 2005-06

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar Us

For Appellant: Shri Ajay VohraFor Respondent: Shri Kanv Bali

…AND ITA.1155/Del/2009 & ITA.5067/Del/2013 AND C. O. No. 55/Del/2014 Sahara India Power Corporation Ltd., Pune completion method when the assessee has offered the income in the year of completion of the project.” 49. In the case of ACIT Vs. National Builders 137 ITD 227 (Ahd Trib) wherein held that: “AS-7 has also made a provision that advances received from customers may not necessarily reflect work performed. Outcome of a contract cannot be estimated reliably, therefore, no profit can be recognized. Clauses of agreement dated 1st March- 2002 prescribe that lease of units agreed to be allotted by assessee to i…

Sahara India Power Corporation Ltd, Pune vs. DCIT, New Delhi

In the result, the appeal filed by the revenue for the AY 2005-06 in I

ITA 1155/DEL/2009[2004-05]Status: DisposedITAT Delhi28 Apr 2023AY 2004-05

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar Us

For Appellant: Shri Ajay VohraFor Respondent: Shri Kanv Bali

…AND ITA.1155/Del/2009 & ITA.5067/Del/2013 AND C. O. No. 55/Del/2014 Sahara India Power Corporation Ltd., Pune completion method when the assessee has offered the income in the year of completion of the project.” 49. In the case of ACIT Vs. National Builders 137 ITD 227 (Ahd Trib) wherein held that: “AS-7 has also made a provision that advances received from customers may not necessarily reflect work performed. Outcome of a contract cannot be estimated reliably, therefore, no profit can be recognized. Clauses of agreement dated 1st March- 2002 prescribe that lease of units agreed to be allotted by assessee to i…

Sahara India Power Corporation Ltd., Pune vs. Assistant Commissioner of Income-Tax

In the result, the appeal filed by the revenue for the AY 2005-06 in I

ITA 109/PUN/2007[2003-04]Status: DisposedITAT Delhi28 Apr 2023AY 2003-04

Bench: Dr. B.R.R. Kumar & Shri Yogesh Kumar Us

For Appellant: Shri Ajay VohraFor Respondent: Shri Kanv Bali

…AND ITA.1155/Del/2009 & ITA.5067/Del/2013 AND C. O. No. 55/Del/2014 Sahara India Power Corporation Ltd., Pune completion method when the assessee has offered the income in the year of completion of the project.” 49. In the case of ACIT Vs. National Builders 137 ITD 227 (Ahd Trib) wherein held that: “AS-7 has also made a provision that advances received from customers may not necessarily reflect work performed. Outcome of a contract cannot be estimated reliably, therefore, no profit can be recognized. Clauses of agreement dated 1st March- 2002 prescribe that lease of units agreed to be allotted by assessee to i…

M/S. Trishul Buildtech & Infrastructures Pvt. Ltd., Bengaluru vs. The Deputy Commissioner of Income-Tax, Central Circle-2(2), Bengaluru

In the result, assessee’s appeals are partly allowed

ITA 109/BANG/2022[2018-19]Status: DisposedITAT Bangalore14 Nov 2022AY 2018-19

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri A. Shankar, Senior AdvocateFor Respondent: Shri Manjunath Karkihalli, D.R
Section 250

…in the preceding assessment year, there is no justification to reject the said method to apply the percentage completion method when the assessee has offered the income in the year of completion of the project.” 16.8 In the case of ACIT Vs. National Builders 137 ITD 227 (Ahd Trib) wherein held that: “AS-7 has also made a provision that advances received from customers may not necessarily reflect work performed. Outcome of a contract cannot be estimated reliably, therefore, no profit can be recognized. Clauses of agreement dated 1st March- 2002 prescribe that lease of units agreed to be allotted by assessee to i…

M/S. Trishul Buildtech & Infrastructures Pvt. Ltd., Bengaluru vs. The Deputy Commissioner of Income-Tax, Central Circle-2(2), Bengaluru

In the result, assessee’s appeals are partly allowed

ITA 108/BANG/2022[2017-18]Status: DisposedITAT Bangalore14 Nov 2022AY 2017-18

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri A. Shankar, Senior AdvocateFor Respondent: Shri Manjunath Karkihalli, D.R
Section 250

…in the preceding assessment year, there is no justification to reject the said method to apply the percentage completion method when the assessee has offered the income in the year of completion of the project.” 16.8 In the case of ACIT Vs. National Builders 137 ITD 227 (Ahd Trib) wherein held that: “AS-7 has also made a provision that advances received from customers may not necessarily reflect work performed. Outcome of a contract cannot be estimated reliably, therefore, no profit can be recognized. Clauses of agreement dated 1st March- 2002 prescribe that lease of units agreed to be allotted by assessee to i…

M/S. Trishul Buildtech & Infrastructures Pvt. Ltd., Bengaluru vs. The Deputy Commissioner of Income-Tax, Central Circle-2(2), Bengaluru

In the result, assessee’s appeals are partly allowed

ITA 107/BANG/2022[2016-17]Status: DisposedITAT Bangalore14 Nov 2022AY 2016-17

Bench: Shri Chandra Poojari & Shri George George K.

For Appellant: Shri A. Shankar, Senior AdvocateFor Respondent: Shri Manjunath Karkihalli, D.R
Section 250

…in the preceding assessment year, there is no justification to reject the said method to apply the percentage completion method when the assessee has offered the income in the year of completion of the project.” 16.8 In the case of ACIT Vs. National Builders 137 ITD 227 (Ahd Trib) wherein held that: “AS-7 has also made a provision that advances received from customers may not necessarily reflect work performed. Outcome of a contract cannot be estimated reliably, therefore, no profit can be recognized. Clauses of agreement dated 1st March- 2002 prescribe that lease of units agreed to be allotted by assessee to i…

Assistant Commissioner of Income Tax, Central Circel-2(1), Bangalore vs. Sri Mathikere Ramaiah Seetharam, Bangalore

In the result, the appeals filed by the revenue are dismissed and the COs filed by the assessee are partly allowed for statistical purposes

ITA 544/BANG/2021[2016-17]Status: DisposedITAT Bangalore07 Nov 2022AY 2016-17

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri H. Nagin Khincha &For Respondent: Shri M. Mathivanan, D.R
Section 131Section 132(4)Section 153CSection 45(2)

…in the preceding assessment year, there is no justification to reject the said method to apply the percentage completion method when the assessee has offered the income in the year of completion of the project.” 8.9 In the case of ACIT Vs. National Builders 137 ITD 227 (Ahd Trib) wherein held that: “AS-7 has also made a provision that advances received from customers may not necessarily reflect work performed. Outcome of a contract cannot be estimated reliably, therefore, no profit can be recognized. Clauses of agreement dated 1st March- 2002 prescribe that lease of units agreed to be allotted by assessee to i…

Assistant Commissioner of Income Tax, Central Circel-2(1), Bangalore vs. Sri Mathikere Ramaiah Seetharam, Bangalore

In the result, the appeals filed by the revenue are dismissed and the COs filed by the assessee are partly allowed for statistical purposes

ITA 543/BANG/2021[2015-16]Status: DisposedITAT Bangalore07 Nov 2022AY 2015-16

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri H. Nagin Khincha &For Respondent: Shri M. Mathivanan, D.R
Section 131Section 132(4)Section 153CSection 45(2)

…in the preceding assessment year, there is no justification to reject the said method to apply the percentage completion method when the assessee has offered the income in the year of completion of the project.” 8.9 In the case of ACIT Vs. National Builders 137 ITD 227 (Ahd Trib) wherein held that: “AS-7 has also made a provision that advances received from customers may not necessarily reflect work performed. Outcome of a contract cannot be estimated reliably, therefore, no profit can be recognized. Clauses of agreement dated 1st March- 2002 prescribe that lease of units agreed to be allotted by assessee to i…

Assistant Commissioner of Income Tax, Central Circel-2(1), Bangalore vs. Sri Mathikere Ramaiah Seetharam, Bangalore

In the result, the appeals filed by the revenue are dismissed and the COs filed by the assessee are partly allowed for statistical purposes

ITA 542/BANG/2021[2014-15]Status: DisposedITAT Bangalore07 Nov 2022AY 2014-15

Bench: Shri Chandra Poojari & Smt. Beena Pillai

For Appellant: Shri H. Nagin Khincha &For Respondent: Shri M. Mathivanan, D.R
Section 131Section 132(4)Section 153CSection 45(2)

…in the preceding assessment year, there is no justification to reject the said method to apply the percentage completion method when the assessee has offered the income in the year of completion of the project.” 8.9 In the case of ACIT Vs. National Builders 137 ITD 227 (Ahd Trib) wherein held that: “AS-7 has also made a provision that advances received from customers may not necessarily reflect work performed. Outcome of a contract cannot be estimated reliably, therefore, no profit can be recognized. Clauses of agreement dated 1st March- 2002 prescribe that lease of units agreed to be allotted by assessee to i…

Elenji Kamalil V. Thomas, Navi Mumbai vs. Jt.C.I.T. 22(3), Mumbai

In the result, the appeal filed by the assessee in ITA N0

ITA 199/MUM/2013[2009-10]Status: DisposedITAT Mumbai18 May 2016AY 2009-10

Bench: Shri Saktijit Dey & Shri Ramit Kocharआयकर अपील सं./I.T.A. No. 199/Mum/2013 ("नधा"रण वष" / Assessment Year : 2009-10) Elenji Kamalil V. Thomas, Jcit – 22(2), बनाम/ 212, Vardhaman Chambers, Navi Mumbai. V. Sector 17, Vashi, Navi Mumbai – 400 703. "थायी लेखा सं./Pan : Aacpe 7339 L (अपीलाथ" /Appellant) .. (""यथ" / Respondent)

For Respondent: Shri Sunil Kumar Agarwal
Section 143(2)Section 143(3)Section 43(6)(c)

…he addition of Rs. 77,99,056 is required to be deleted. In support, the assessee relied upon the decision of ITAT , Mumbai Bench in the case of Awadhesh Builders v. ITO, (2010) 37 SOT 122(Mum.) and ITAT , Ahmadabad Benches in ACIT v. National Builders, (2012) 137 ITD 277(Ahd. Trib.). The assessee also relied on the decision of Hon’ble Supreme Court in the case of CIT v. Realest Builders & Services Ltd.(2008)307 ITR 202(SC) , wherein the Hon’ble Supreme Court held that in the absence of any specific finding to demonstrate that there is an underestimation of income, the presumption would be that the entire exercise…

ACIT v. National Builders (137 ITD 227) — Cited in 10 Judgments | BharatTax