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2017 (11) TMI 858 - DELHI HIGH COURTAccepting the method of treatment of revenue and income by ITAT - assessee is a developer and undertakes construction projects including those of commercial buildings - AO ought to bring additional amount to tax on the ground that even while the assessee claimed to have followed the AS-9 method, he neither followed the Project Completion Method i.e. the Revenue recognition on transfer of goods, he also did not apply the other more recognized method approved under Section 145 i.e, the Percentage Completion Method Held that:- It is an established legal proposition that an assessee can follow any recognized method of accounting and the condition is that the same method has to be followed consistently. Since the assessee in the instant case was regularly following the project completion method and has offered the income in the year of completion of project, there is no sound reason as to why the same should be rejected and percentage completion method be followed. This Court is of the opinion that the instances pointed out by the ITAT, in the present case, are significant – both in the previous assessment year as well as in the subsequent assessment years, the AO appears to have accepted the system of accounting. There is nothing on record to suggest that the assessee was undertaking large scale activity. The findings rendered by the ITAT are peculiar to the circumstances of the case and, cannot be said to have universal or wide applicability so as to require a question of law.
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