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2012 (5) TMI 148 - AT - Income TaxMethod of accounting - Treatment of advance received from customers as sales - Application of AS-7 to construction contractors and to builder or real estate developers. - The findings of the Assessing Officer for including the sale proceeds of the plots/floors in respect of which assessee has received advances. However, sale deeds have not been registered in this year. Now, the case of the Assessing Officer is that merely on account of non-registration of sale deed, it cannot be construed that transaction has not been completed between the parties. The assessee cannot defer or postpone the recognition of the revenue in respect of these plots. - held that:- In the case of assessee, it is a developer and recognized the sale of the plots on execution of the conveyance deed duly registered. Taking into consideration all these aspects, we do not find any reason to change the method of accounting in this year which was accepted in the past. The A.O. has not assigned any reason for this change. - Decided in favor of assessee.
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