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Income Tax - Highlights / Catch Notes

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Determination of correct profits - percentage completion method ...

Case Laws     Income Tax

May 22, 2023

Determination of correct profits - percentage completion method - real estate development - when a stage is arrived that risk and rewards shift from the developer to buyer irreversibly, then project revenue and project cost associated with the real estate project should be recognised as revenue and expenses by reference to the stage of completion of the project activity at the reporting date. - AT

 

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  4. Inclusion of land in Working of cost of the real estate development project - if the cost of land is included in the percentage of the project completion, then it would...

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  11. Revenue recognition - AO will not be justified to work out the profit by applying percentage of completion method during the impugned year on selective basis - AT

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  13. Addition on account of revenue recognition following percentage of completion method (POCM) - as per AO assessee had incurred substantial expenses on construction but...

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