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2024 (2) TMI 637 - ITAT DELHIDetermination of income - Accounting of real estate transactions - Correct method of accounting adopted for revenue reorganization - Addition by applying percentage of completion method (AS-9) - AR submitted that the assessee has consistently followed the Project Completion Method which has been accepted by the department in earlier years and ‘Principle of Resjudicata’ applies to the case of the assessee. The project is still going on - CIT(A) deleted addition - HELD THAT:- CIT(A) has recorded the finding that the assessee is a builder and not a contractor and that in view of the stipulations of the agreement it cannot be said that significant risks and rewards on ownership had been transferred to buyer prior to execution of the sale deed. As stipulated in the agreement to sell that no property during construction shall stand transferred or deemed to be transferred to the allottee(s) and the apartments under construction shall continue to be sole property of the owner and it is only the duly completed apartment there in the property that shall be transferred on registration of the Apartment in his name. AR’s contention is that the assessee has neither conflicted Guidance note on Accounting for Real Estate Transactions (Revised 2012) while following Project Completion Method for revenue recognition nor ICDS-III is applicable to the assessee. These contentions of the assessee could not be refuted by the Revenue. CIT(A) has followed the decisions of Paras Buildtech India Private Limited [2015 (11) TMI 1217 - DELHI HIGH COURT] and Sabh Infrastructure Ltd. [2012 (4) TMI 621 - ITAT DELHI] We do not find any reason to interfere with the decision of the Ld. CIT(A). Appeal of the Revenue is dismissed.
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