2020 (10) TMI 978

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....in the facts and circumstances of the case and in law, the ld. CIT(A) is justified in deleting the addition of Rs. 1,74,70,288/-. 2. Whether in the facts and circumstances of the case and in law, the ld. CIT(A) is justified in rejecting the findings of the AO that percentage completion method is the correct method for revenue recognition by the assessee. 3. Whether in the facts and circumstances of the case and in law, the ld. CIT(A) is justified in rejecting the findings of the AO that the assessee has not complied with the provisions of AS-7 and AS-9. 4. The appellant craves its rights to add, amend or alter any of the grounds on or before the hearing." 2. The hearing of the appeal was concluded through video....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....entage completion method is incorrect. It is further seen that the Assessing Officer in fact even not applied the percentage completion method correctly. He treated entire advances received as income which is incorrect. Considering all these facts, the addition made is deleted." Against which, the revenue is in further appeal before the ITAT 4. We have considered the rival contentions and carefully gone through the orders of the authorities below and found from the record that during the course of assessment proceedings, it was submitted before the AO that the assessee firm, being a Real Estate Developer, recognized its revenue consistently, on a year-on-year basis, by following the accounting policy as stated hereinbefore. However, in h....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Section 143(3) of the Act in the case of the assessee firm for A.Y. 2013-14 (F.Y. 2012-13). Moreover, Percentage Completion Method for recognition of revenue, till the F.Y. 2015-16 (A.Y. 2016-17), was not mandatory/compulsory to be followed by the assessee. It is only with effect from F.Y. 2016-17 (A.Y. 2017-18), that Percentage Completion Method has been made compulsory for the Real Estate Developers, that too for projects commencing on or after 01.04.2016, by way of introduction of Income Computation and Disclosure Standards (ICDS - III), relating to Construction Contracts. 7. Since the assessee firm has been consistently following the same accounting policy for recognition of revenue, which has even been accepted in the past, therefo....