No Penalty when expenses disallowed were otherwise allowable in next year

Granite Gate Properties (P.) Ltd. Vs PCIT (Delhi High Court) FACTS – Assessee is a company engaged in real-estate development and started construction of 2 housing projects Lotus Boulevard and Lotus Panache in AY 2010-11 and 2011-12. Assessee was following Percentage of Completion Method (PoC) of accounting. Assessee didn’t recognized revenue of Lotus Boulevard and Lotus Panache till construction and development had crossed threshold of 30%. Threshold of 30% of Lotus Boulevard and Lotus Panache were crossed during AY 2010-11 and 2011-12 and accordingly proportionate cost and revenue was bo...