{"id":62195,"date":"2026-07-18T15:31:24","date_gmt":"2026-07-18T10:01:24","guid":{"rendered":"https:\/\/itatonline.org\/digest\/vtp-mohite-associates-v-dcit-2025-132-itr-580pune-trib\/"},"modified":"2026-07-18T15:31:24","modified_gmt":"2026-07-18T10:01:24","slug":"vtp-mohite-associates-v-dcit-2025-132-itr-580pune-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/vtp-mohite-associates-v-dcit-2025-132-itr-580pune-trib\/","title":{"rendered":"VTP Mohite Associates v. DCIT (2025) 132 ITR 580(Pune) (Trib.)"},"content":{"rendered":"<p style=\"margin: 0in;margin-bottom: .0001pt;text-align: justify;line-height: 150%\"><span lang=\"EN-IN\" style=\"font-family: &#039;Verdana&#039;,sans-serif\">Assessee, engaged in real estate development and following the project-completion method of accounting, had its sale proceeds of 54 properties brought to tax by AO applying a net profit rate of 10% on the ground that the registration deeds executed amounted to complete transactions, and 10% of total expenses allocated among group companies for common projects were disallowed for want of substantiation, both of which additions were upheld by CIT(A). On appeal, the Tribunal held that the documents in respect of the 54 units were mere agreements to sell containing termination clauses, with substantial consideration received and possession handed over only in the subsequent year, and since AO had accepted the applicability of section 43CB and the project-completion method without invoking section 263, the ad hoc addition based on registration of sale deeds was not justified and was to be deleted; it further held that the allocation of common expenses such as salaries, marketing and administration among group entities based on business volume, consistently accepted by the Department in earlier years and capitalised to WIP under the regularly followed project-completion method, could not be disallowed on an ad hoc basis without pointing out any discrepancy in the audited accounts, and the disallowance was accordingly deleted. (AY. 2018-19)<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S.145: Method of accounting-Project-completion method-Real estate developer-Sale proceeds recognised only upon obtaining completion certificate and handing over possession, not during year under consideration-No sales effected or possession handed over during relevant year-Ad hoc addition based on registration of sale deeds not justified-Allocation of common expenses among group companies based on business volume accepted by Department in earlier years-Project-completion method regularly followed-No discrepancy pointed out in audited accounts-Ad hoc disallowance not justified. [S. 43CA ,143(3)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-62195","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gb9","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=62195"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62195\/revisions"}],"predecessor-version":[{"id":62196,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/62195\/revisions\/62196"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=62195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=62195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=62195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}