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2023 (12) TMI 393 - AT - Income TaxMethod of accounting for real estate project - Income recognition - Addition made applying Percentage of Completion Method [POCM] - Accrual of income for real estate - Rule of Consistency - AO referred to the Accounting Standard for real estate project issued by Institute of Chartered Accountant of India which provided that w.e.f. 01.04.2012 income has to be accrued in respect of all real estate on POCM - CIT(A) deleted addition - HELD THAT:- As prior to the impugned A.Y 2014-15, in the case of all previous A.Ys, assessment has been framed after thorough scrutiny and method of accounting has been accepted by the Assessing Officer. On such facts Rule of Consistency squarely applies. See Excel Industries Ltd [2013 (10) TMI 324 - SUPREME COURT] In so far as applicability of Accounting Standard Guidance Note is concerned, it is pertinent to mention that the same has not been notified by the Central Government for the purpose of section 145(2) of the Act. Therefore, no adverse inference can be drawn. See Para Buildtech India (P) Ltd [2015 (11) TMI 1217 - DELHI HIGH COURT] Also in the case of Bilhari Investment Pvt Ltd [2008 (2) TMI 23 - SUPREME COURT] to decide on choice of method of accounting every assessee is entitled to arrange its affairs and follow the method of accounting, which the Department has earlier accepted. It is only in those cases where the Department records a finding that the method adopted by the assessee results in distortion of profits, the Department can insist on substitution of the existing method. Decided against revenue.
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