Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
Inherited property sale proceeds require capital-gains treatment where ownership is supported by evidence, not suspicion or unverified signature doubt...
Cross-examination of retracted statements is essential where foundational evidence supports a benami allegation and documented funding explanations re...
Capital-goods exemption covers plant-modernisation accessories, while the import restriction applies only to earlier capital-goods components and spar...
Constitutional judicial review permits challenges to ECIRs and connected money-laundering proceedings where coercive action affects fundamental intere...
The ITAT upheld the assessee's method of revenue recognition under AS-9, wherein income is recognized upon execution of sale deeds and possession transfer, rejecting the AO's application of PCM under AS-7 and Section 43CB. The tribunal found the assessee consistently capitalized costs as work-in-progress and credited advances as liabilities rather than revenue, reflecting proper accounting treatment. The AO's adverse inference applying PCM was deemed erroneous as the assessee was a developer, not a contractor. Following precedents, the ITAT deleted the additions made by the lower authorities, allowing the assessee's grounds and confirming the acceptance of the revenue recognition method for the assessment year in question.
The ITAT upheld the assessee's method of revenue recognition under AS-9, wherein income is recognized upon execution of sale deeds and possession transfer, rejecting the AO's application of PCM under AS-7 and Section 43CB. The tribunal found the assessee consistently capitalized costs as work-in-progress and credited advances as liabilities rather than revenue, reflecting proper accounting treatment. The AO's adverse inference applying PCM was deemed erroneous as the assessee was a developer, not a contractor. Following precedents, the ITAT deleted the additions made by the lower authorities, allowing the assessee's grounds and confirming the acceptance of the revenue recognition method for the assessment year in question.
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