https://www.taxtmi.com/caselaws?id=754529 ITAT Delhi ruled on assessee's change from percentage of completion method (POCM) to project completion method (PCM) for revenue recognition. AO added financial impact of accounting method change as current year profit, resulting in abnormally high profit margins. ITAT held that selection of accounting method is assessee's right, provided it's consistently followed per ICAI/IAS standards. AO cannot restrict method selection or treat accounting impact as profit understatement. Matter remitted to AO for verification of proper implementation and consistency, with directions to provide adequate hearing opportunity. en-us Fri, 21 Jun 2024 00:00:00 +0530 Wed, 26 Jun 2024 08:30:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754529 ITAT Delhi ruled on assessee's change from percentage of completion method (POCM) to project completion method (PCM) for revenue recognition. AO added financial impact of accounting method change as current year profit, resulting in abnormally high profit margins. ITAT held that selection of accounting method is assessee's right, provided it's consistently followed per ICAI/IAS standards. AO cannot restrict method selection or treat accounting impact as profit understatement. Matter remitted to AO for verification of proper implementation and consistency, with directions to provide adequate hearing opportunity. Case-Laws Income Tax Fri, 21 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754529