https://www.taxtmi.com/caselaws?id=774306 The ITAT Ahmedabad ruled in favor of the assessee firm regarding income recognition method for a real estate project. The assessee consistently followed project completion method under AS-9, recognizing revenue only upon execution of conveyance deed and possession handover, not the percentage completion method under AS-7. The Revenue had accepted this method for other assessment years including 2016-17, 2017-18, and 2019-20 to 2024-25 for the same project. The tribunal found AS-7 inapplicable since the assessee was developing land as owner, not contractor, and properly treated booking advances as liabilities and construction costs as work-in-progress. The additions made by lower authorities were deleted. en-us Thu, 03 Jul 2025 00:00:00 +0530 Mon, 07 Jul 2025 08:42:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774306 The ITAT Ahmedabad ruled in favor of the assessee firm regarding income recognition method for a real estate project. The assessee consistently followed project completion method under AS-9, recognizing revenue only upon execution of conveyance deed and possession handover, not the percentage completion method under AS-7. The Revenue had accepted this method for other assessment years including 2016-17, 2017-18, and 2019-20 to 2024-25 for the same project. The tribunal found AS-7 inapplicable since the assessee was developing land as owner, not contractor, and properly treated booking advances as liabilities and construction costs as work-in-progress. The additions made by lower authorities were deleted. Case-Laws Income Tax Thu, 03 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774306