ITO Vs Reliable Builders & Developers (ITAT Mumbai)
Addition for Differences between sales shown in the GST return and Income Tax Return: ITAT observed, that the Assessee has offered only proceeds of sale of TDR amounting to Rs.3,76,74,000/- in the return of income, however, in the GST returns had shown the turnover made towards advances received from the buyers to the tune of Rs.35,25,19,560/. Mandate of CGST Act is that the Assessee is supposed to declare any amount received or receivable, as per the construction schedule and accordingly liable to pay the tax as per CGS Tax Act. We are in concurrence with the contention of the Ld. Sr. Counsel that different statutes such as GST Act and the Income Tax Act as applicable to the instant case, are having their own parameters and cannot be equated with each other. As in the CGST Act, the consideration which is received or receivable is supposed to be disclosed, as it appears from the definition and therefore in compliance to the terms of GST Act, the Assessee has shown the amount received or receivable and paid the relevant taxes as per CGST Act accordingly. Whereas for the income tax purposes, as the Assessee has been consistently following the project completion method and therefore treated the consideration received on account of flats sold, as advances as current liabilities, but not as sales/turnover. Hence, ITAT held that, the difference between the turnover shown in GST Return and ITR has been properly reconciled by the Assessee and therefore addition made by the AO on this aspect, at all is not sustainable and therefore has rightly been deleted by the ld. Commissioner.
