TaxTMI 
TaxTMI 
2017 (4) TMI 826
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....t, the Tribunal). 3.The Revenue is aggrieved by the fact that the Tribunal has sustained the method of accounting followed by the Assessee as against the one reflected in the orders passed by the Assessing Officer. 3.1.To be noted, the Assessee has followed the method of accounting, which is referred to as Project Completion Method whereas, the Revenue seeks to profess that it ought to have followed the Percentage of Completion Method . 4.It is not disputed before us, by the learned counsel for the Revenue that the Assessee has been consistently being following the 'Project Completion Method'. 4.1.It is also not disputed before us, by the learned counsel for the Revenue that the Assessee is a developer and not a contract....
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...., the Assessee. 6.3.This method of accounting, as is indicated above, stands replicated by the Assessing Officer in the other Assessment Years. 7.The Assessee, being aggrieved, had preferred appeals with the Commissioner of Income Tax (Appeal) (in short, CIT(A)), qua, each of the Assessment Years, which were rejected. In other words, the method adopted by the Assessing Officer was sustained by the CIT(A). 7.1.The Tribunal, however, via the impugned order, based on the appeals preferred by the Assessee, reversed the view of the Authorities below. 8.In arriving at its conclusion, the Tribunal has made the following observations in paragraphs 5 and 7 of the impugned order. For the sake of convenience, the same are replicated hereaf....
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....rder is very cryptic and not given complete facts and figures to demonstrate the impugned method of accounting adopted by the assessee results in underestimation of profit and therefore, the Assessing Officer and the Id. CIT(A) rejected the method adopted by the assessee. 7.Thus, in our opinion, profits in the case of a trade adventure/project may be determinable in each year without waiting for the whole adventure/project to be finally completely, yet there is also another method of accounting for profits of the adventure/project referred to as completed project method of accounting, which too is a recognized method, which the assessee has been following consistently. It may be quite relevant to observe here that one needs be cons....
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....says that since the title in the underlying land has already been transferred, on a pro rata basis, to the prospective owners of the flats, the method adopted by the Assessing Officer ought to have been sustained by the Tribunal. 9.1.It is also the submission of the learned counsel that the said method is realistic and therefore, brings to fore for the purposes of assessment, the income of the Assessee for the relevant assessment year. 10.We have heard the learned counsel for the Revenue. 11.According to us, as indicated right at the outset, it is not disputed by the Revenue that the Assessee has been consistently following the 'Project Completion Method', for accounting its income. 11.1.It is also, not disputed before u....