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TMI Blog2021 (2) TMI 969X X X X Extracts X X X X X X X X Extracts X X X X ..... B(10) of the Act proportionately. - Decided in favour of assessee. - HON BLE MR. JUSTICE SATISH CHANDRA SHARMA AND HON BLE MR. JUSTICE V. SRISHANANDA APPELLANTS : (BY SRI SANMATHI E.I., ADVOCATE FOR SRI JEEVAN J. NEERALGI, ADVOCATE) RESPONDENT : None JUDGMENT V. SRISHANANDA. J., The Revenue is in appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as the Act , for short). The subject matter of the appeal pertains to the Assessment Year 2012-14. 2. Though this appeal is listed for orders, the matter is taken up for final hearing with the consent of the parties. 3. In the appeal Memorandum following substantial questions of law are framed: (i) Whether on the facts and circumstances of the case, the Tribunal was j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concluded that the respondent did not fulfill the condition 'C' laid down in the said provision and disallowed the deduction vide assessment order dated 10.3.2016 (Annexure-B) 6. Being aggrieved by the said assessment order, assessee preferred an appeal before the Commissioner of Income Tax (Appeals). The Commissioner of Income Tax, by his order dated 24.12.2016, in ITA No.279/ACIT-C 4(3)(1)/CIT(A)-4/2014-15 , allowed the appeal and set aside the assessment order, inter alia, holding that derivation of profit based on percentage completion method by the assessee is correct and assessee is entitled to proportionate deduction under Section 801B(10) of the Act in respect of the flats which conform to the limits prescribed under the rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l erred in holding that the project completion method is a recognized method of accounting without properly examining as to whether the assessee is entitled to project completion method in the absence of assessee placing regular books of accounts. It is also pointed out that the Tribunal has placed reliance on the decision rendered in 'M/S. PRESTIGE ESTATE PROJECTS PVT. LTD. Vs. DCIT'.. However, the aforesaid order of the Tribunal was the subject matter of the appeal before this Court in ITA No.84/2010 wherein this Court by order dated 05.05.2020 held that the percentage completion method is applicable to the assessee and therefore, the assessee should have followed the percentage completion method for the Assessment Year 2012-13 al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on method cannot be thrust upon the assessee and the assessee was right following the project completion method of accounting as per Accounting Standard 9. The aforesaid decision has been upheld by this Court in 'CIT Vs. PRESTIGE ESTATES', supra . Besides it, once the first substantial question of law is answered in favour of the assessee, the second substantial question of law is otherwise even rendered academic. The Institute of Chartered Accountants has issued a clarification wherein it has been clarified that revised Accounting Standard 7 is not applicable to the enterprises undertaking construction activities. Therefore, the second substantial question of law is also answered against the revenue and in favour of the assessee. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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