TMI Blog2017 (4) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... counting followed by the appellant is a recognised method of accounting, which has not led to escapment of income, we see no reason to interfere with the impugned judgment and order of the Tribunal. No substantial question of law. - T.C.A. Nos. 161 to 164 of 2017 - - - Dated:- 4-4-2017 - Rajiv Shakdher And R. Suresh Kumar, JJ. For Appellant : Ms.R.Hemalatha JUDGMENT (Judgment of the Court was delivered by Rajiv Shakdher, J. ) These are appeals pertaining to Assessment Years (AY) 2007-08, 2009-10, 2010-11 and 2011-12. 2.These appeals have been filed under Section 260 A of the Income Tax Act, 1961, (in short, the Act), whereby, challenge is laid to the judgment and order dated 29.04.2016, passed by the Income Tax Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctive owners of the flats, albeit, on a pro rata basis. 6.The learned counsel for the appellant says that as against a sum of ₹ 1,05,30,703/- shown as work in progress on 31.03.2007, the Assessee has received towards advance from its customers, a sum of ₹ 2,89,08,177/-. 6.1.It is stated by the learned counsel that, it is, in this background, that the Assessing Officer while passing the order dated 30.03.2013, pertaining to Assessment Year 2007-08 has calculated the income of the Assessee at the rate of 8% of the cost of construction, which was quantified, as ₹ 1,05,30,703/-. 6.2.Accordingly, we are informed that an amount equivalent to ₹ 8,42,456/- was added to the income of the Assessee by adopting 'Per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mum] for the assessment year 2005-06, wherein, it was held that the Accounting standards (AS) 7 Construction Contract (revised) issued by the Institute of Chartered Accountants of India (ICAI) is applicable only to the contractors and not to builders and real estate developers. Accordingly, the project completion method followed by the tax payer for recognizing revenue in the books of accounts cannot be regarded as unreasonable. Further, the tax department cannot change the method of accounting. Despite not controverting the decisions of the Mumbai Benches of the Tribunal in the case of Unique Enterprises v. ITO (supra), the Id. CIT(A) could not distinguish as to what was the revenue loss by following the Project Completion Method adopted b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n any finding that the accounts of assessee suffer from any defect nor that from the method of accounting followed by assessee, true/correct profits of assessee cannot be deduced and the assessee having been following the completed project method consistently, which being a recognized method of accounting, the assessee's method of accounting cannot be rejected nor is there any justification for estimating assessee's profits of the year from the assessee's business activity of building construction by resorting to applying of percentage of profit to the work-in-progress of the year. (emphasis is ours) 8.1.Being aggrieved, the Revenue, as indicated at the outset, has preferred the instant appeals. 9.Ms.Hemalatha, who ..... X X X X Extracts X X X X X X X X Extracts X X X X
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