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2016 (9) TMI 1494 - AT - Income TaxIncome recognition - percentage completion method OR project completion method - AO adopting percentage completion method for recognizing the income of the assessee instead of project completion method chosen by the assessee - case of the Revenue is that Accounting Standard 7 (A.S. 7) is mandatory and hence the assessee should have adopted percentage completion method - HELD THAT:- We find that the assessee is a real estate developer and not a contractor as held by the Ld.CIT(A). A.O. in both the Assessment Years (A.Y.) has accepted the claim of the assessee that it is in the real estate business. On these facts we respectfully follow the decision of the Mumbai Bench of the ITAT in the case of Haware Constructions P.Ltd. vs. ITO [2011 (8) TMI 1080 - ITAT MUMBAI]. Respectfully following the same we hold that A.S.-7 does not apply to the facts of the case. Hence the system of accounting followed by the assessee consistently over the years has to be upheld. - Decided against revenue.
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