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2021 (10) TMI 1195 - AT - Income TaxRevenue recognition - method of accounting - sale of residential/commercial units - revenue from booking of units by the customers - Addition invoking percentage of completion method -"completed contract method" v/s percentage of completion method - Addition deleted by CIT(A) - HELD THAT:- Accounting standard AS-7 relied upon by the Assessing Officer is applicable strictly in the case of construction contracts only. CIT(A) has followed binding precedent of the jurisdictional High Court in the case of Paras buildtech India private limited [2015 (11) TMI 1217 - DELHI HIGH COURT]; Sabh infrastructure Ltd. [2015 (11) TMI 1283 - DELHI HIGH COURT] and Manish Buildwell P. Ltd. [2011 (11) TMI 35 - DELHI HIGH COURT] Further, the assessee is following consistently this method of revenue recognition in prior years as well as in subsequent years and which has been accepted by the revenue and thus rule of consistency also demand that in the year under consideration the assessing officer is not justified in deviating the consistent approach of the Department. No error in the order of the Ld. CIT(A) on the issue in dispute and accordingly we uphold the same. The grounds of the appeal of the revenue are accordingly dismissed.
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