2017 (4) TMI 1153

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt-assessee is a Real Estate Developer and maintains its accounts on the basis of project completion method i.e. AS-9. The Tribunal has accepted the AS-9 as one of the recognized methods of accounting and has reversed the order of the Assessing Authority rejecting the accounts books as they are not maintained according to percentage completion method i.e. AS-7 as confirmed by the Commissioner (Appeals). Sri Praveen Kumar has argued that no doubt the respondent-assessee is a Real Estate Developer but as soon as it entered into an agreement with the prospective purchaser for sale, its status was converted into that of a Contractor and it no longer remained to be a Real Estate Developer. Therefore, he was supposed to follow the percentag....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....unts according to AS-7 or AS-9. In this connection, the Tribunal has recorded a finding that the respondent-assessee had been regularly following the project completion method of accounting (AS-9) and that no defects were ever found in its books of accounts or the method of accounting and the said method of accounting was accepted and recognized by the Department. The project completion method i.e. AS-9 followed by the respondent-assessee is also a recognized method of accounting, prescribed by the Institute of Charted Accountants of India and the revised AS-7 is applicable in the case of Contractor. A Division Bench of this Court in Commissioner of Income Tax Vs. Kishore Bandhu (P.) Ltd., 2008 (11) MTC 22 (Allahabad) relying upon ....