https://www.taxtmi.com/caselaws?id=456447 ITAT Bangalore held that revenue recognition under Percentage Completion Method for real estate transactions must comply with ICAI Guidance Note para 5.3. The case involved dispute over land cost valuation in PCM calculations. Tribunal found that saleable area percentage (19.89%) was below required 25% threshold, making conditions under clause (c) unsatisfied. Matter remitted to AO with directions to recompute percentage of cost and saleable area per ICAI guidelines, ensuring all cumulative conditions in para 5.3 are satisfied before revenue recognition. Appeal allowed for statistical purposes. en-us Wed, 08 Jun 2022 00:00:00 +0530 Thu, 25 Jul 2024 20:02:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456447 ITAT Bangalore held that revenue recognition under Percentage Completion Method for real estate transactions must comply with ICAI Guidance Note para 5.3. The case involved dispute over land cost valuation in PCM calculations. Tribunal found that saleable area percentage (19.89%) was below required 25% threshold, making conditions under clause (c) unsatisfied. Matter remitted to AO with directions to recompute percentage of cost and saleable area per ICAI guidelines, ensuring all cumulative conditions in para 5.3 are satisfied before revenue recognition. Appeal allowed for statistical purposes. Case-Laws Income Tax Wed, 08 Jun 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456447