mandatory or not for the assessment years prior to insertion
of section 43CB ... percentage completion method has been made
compulsory by insertion of section 43CB of the Act and is
mandatory only for assessment years
onwards. The said
section reads as under:-
7
Hindustan Construction Company Limited
"Section 43CB: (1) The profits and gains arising from a construction
contract ... there is no conflict between sec.
43CA and ICDS-III as understood by Ld DRP. He submitted that sec.
43CB(1) itself provides for determination
notice.
19. Further, our reference was drawn to the provisions of Section 43CB of the
Act introduced by the Finance Act 2018 with retrospective effect ... specific argument has been taken regarding non
applicability of provisions of Section 43CB of the Act.
21. It was further submitted that the assessee
Completion
Method. The Ld. AR has submitted that before the introduced section
43CB vide Finance Act 2018 with retrospective effect 01.04.2017 the
Percentage Completion Method ... mandatory for the Real Estate
business. He has submitted that section 43CB is not applicable for the
year under consideration and therefore, question of applicability
facts of
the case.
5.11 The ld. A.R. submitted that section 43CB of the Act has been
inserted by the Finance ... recognised method of accounting for computation of gains
from construction contract. Section 43CB was inserted by the Finance Act,
2018 w.e.f. 1.4.2017 which
recognised
method of accounting for computation of gains from
construction contract. Section 43CB was inserted by the
Finance ... legal claim or change of opinion cannot partake character of
concealment. Section 43CB has been inserted w.e.f. 1/4/2017.
Hence Section 43CB
other hand, the ld. DR has submitted that the as per section
43CB of the Act inserted by the Finance ... taxed as per the above provisions. The
relevant provisions of section 43CB of the Act are reproduced as under:
Computation of income from construction
u/s 263 of the Act. The impugned order of Ld. Pr. CIT is quashed.
Thus in our considered view assessment order dated 11.09.2017 ... Having held that the provision of section 43CB are not
applicable for the year under consideration the question arises is
whether
recognised method of accounting for computation of gains from
construction contract. Section 43CB was inserted by the Finance Act, 2018 w.e.f.
1.4.2017 which ... percentage
completion method has been made compulsory by subsequent insertion
of Section 43CB of the Act by Finance
World Trade Park Limited, Mumbai vs Pcit - 5 , Mumbai on 28 March, 2023
IN THE
