TaxTMI 
TaxTMI 
2026 (6) TMI 1343
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....x Appellate Tribunal (ITAT), Pune was disposed of by directing that the matter be remitted to the file of the Assessing Officer with a direction to assess the correct income derived by the assessee in the execution of the housing project under the Project Completion Method, in accordance with law, after affording a reasonable opportunity of hearing to the assessee. 2. It appears from the record that, inadvertently, a statement was made on behalf of the assessee and recorded under Section 132(4) of the Income Tax Act. However, the said statement was immediately retracted and it was brought on record that the books of account were being maintained in accordance with the Project Completion Method. The Assessing Officer however proceeded on ....
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....indefinitely is not correct as it is tax neutral. He further submits that revenue recognition under project completion method is accepted by the Hon'ble jurisdictional High Court in the case of CIT vs. Aditya Builders (2015) 378 ITR 75 (Bom) and placed reliance on the ratios laid down in the cases of Pr.CIT vs. Nathpa Jhakri Joint Venture, 299 ITR 1 (Bom), CIT vs. Manish Build Well (P.) Ltd. (2011) 245 CTR 397 (Del) and CIT vs. Varun Developers, 440 ITR 354 (Kar). Finally, he submits that in the preceding assessment year i.e. 2015-16, the AO has accepted project completion method followed by the assessee and there is no reason as to why the same cannot be followed to deviate from the earlier years. 9. We have heard the rival co....
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....years, the same should not lightly to be substituted, unless the Department is able to show that the same distorts the profits for a particular year. The choice of method of accounting is always left to the assessee as held by the Hon'ble Apex Court in the case of United Commercial Bank Vs CIT, 240 ITR 355 (SC). Thus, the CIT(A) had rightly applied the correct position of law to the facts of the present case and rightly held that it is not open to the AO to disturb the method of accounting and make addition. 11. However, the AO had no occasion to examine the correctness of amount of taxable profits offered under project completion method nor the CIT(A) had examined the issue of correct taxable income under project completion me....
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....of revenue recognition applied (percentage completion method) by the AO without appreciating the fact that the material evidences gathered during the course of search & seizure action established that major portion of the project has been completed and already sold/booked but revenue has not been recognized by the assessee?" C. "Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was justified in holding that the statement recorded u/s 1324) of the Income Tax Act, 1961 has no evidentiary value?" 5. The learned Counsel for the Appellant has made submissions contending that, in the facts of the case and in view of the stand taken by the assessee, the Tribunal ought not to have passed the impu....