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2014 (1) TMI 335 - AT - Income TaxMethod of revenue recognition in business of real estate development - Held that:- Following assessee's own case for the A.Y. 2006-07 - Ld. CIT(A) has deleted the similar addition - Assessee has been following particular system of accounting for revenue recognition which has been mentioned in the Accounting Policies filed alongwith the return of income for the year under consideration as well as for earlier years - When assessee has been following the particular system of accounting consistently, Assessing Officer has chosen to depart from the accepted method of accounting of the assessee without putting forth the cogent reasoning - In respect of properties for which the addition has been made in this year, the sales has been recognised in the subsequent years - Following CIT vs. Excel Industries [2013 (10) TMI 324 - SUPREME COURT] - When in earlier asstt. years the revenue accepted the order of the tribunal in favour of the assessee, then Revenue cannot be allowed to flip flop on the issue and it ought let the matter rest rather than spend the tax payers money in pursuing litigation for the sake of it - In the subsequent accounting year, assessee has disclosed the income and paid tax thereon and if the rate of tax remained the same in the present asstt. year as well as in the subsequent asstt. year, the dispute raised by the Revenue was entirely academic or at best may have a minor tax effect – Decided against Revenue.
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