ITAT restricts addition for advance received by builder from customers to 5%

Srabani Constructions Pvt Ltd. Vs ACIT (ITAT Cuttack) In the present case, the AO has made addition of Rs.1,68,54,180/ @ 15% by considering whole amount of advance from customers i.e. closing balance as on 31.3.14 of Rs.11,23,61,227/-, which also includes opening balance from customers brought forward from earlier year as opening balance as on 1.4.2013 of Rs.8,09,01,787.64. As I have noted above that as per the decision of Hon’ble Gujarat High Court in the case of Sjhivalik Buildwell pvt Ltd (supra), the profit in its case would arise only on transfer of title of property, therefore, receipt...