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TMI Blog2020 (5) TMI 720X X X X Extracts X X X X X X X X Extracts X X X X ..... od is consistently and regularly followed by the assessee since this project was undertaken and the method has been accepted by the department for the Assessment Year 2014-15 in an assessment order passed u/s 143 of the Act. The principle of consistency has to be applied. Nothing needs to be added to the detailed finding of the ld. CIT(A). The case law discussed is appropriate. Thus, we uphold the finding of the ld. CIT(A) and dismiss this appeal of the revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... ibed by it can be invoked in the assessee's case. 4) If the answer to Question No. 3 is affirmative, then whether the revenue so recognized and the expenses so considered by AO by treating the entire project as one is right and therefore merits of the question of computation so made by the AO. 4.1. The questions were answered by the ld. CIT(A) in the following manner :- "Having considered the aforesaid, I intend to first discuss and decide on Questions No. 1 & 2. Se. 145(1) of the IT Act states that the income chargeable under the head profit and gain of business or profession shall be computed in accordance with either cash or mercantile system of accounting "regularly employed by the assessee". It is only effect from 1.4.2015 that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le adjudicating upon the aforesaid aspect I also have gone through the various aspects of Accounting Standard 7 and the "FAR" issue by the ICAI and the various judicial precedents as well. On a perusal of the Accounting Standard 7, it is very clearly mentioned that the Accounting Standard 7 does not apply Builders, Developers and hence from inception AO is on a wrong footings sir the Developer is developing the units on its own behalf and not on behalf of ultimate buyer and the ultimate buyer gets the property only when the possession of the same is handed over on completion of the project and receipt of the occupation certificate from the local authorities. Even the reliance as Hon'ble Supreme Court judgment treating the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l)-Departmenet had accepted assessee's method of accounting namely Project Completion Method in earlier year and therefore there was no justification for adopting the Percentage Completion Method in subsequent year on selective basis. CIT (Central), Gurgaon v. Principal Officer, Hill View Infrastructure Pvt. Ltd (2017) 81 taxmann.com 58 (P&H)- Where assessee company had been consistently following Project Completion Method to compute profits in real estate business, Assessing Officer could not apply Percentage Completion Method [In favour of assessee] Nandi Housing Pvt. Ltd. v. DCIT (2004) 2 SOT 395 (Bang.)- Project Completion Method- Whether since, in instance case, it was not department's case that assessee had not followed sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hough sale deeds of units sold were registered even through sale consideration might have been received earlier from buyer- Tribunal accepted assessee's contention that since firm was following Project Completion Method for offering income to tax, same would be subjected to tax upon completion of sale, though amount may have been received earlier from buyer [In favour of assessee] ITO v. Matushree Builders & Developers- ITA No. 2652/Mum/2016 dt. 29.11.2017 Haware Infrastructure Pvt. Ltd. v. ACIT- ITA No. 2642/Mum/2012 dt. 4.10.2013 DCIT v. Friends Buildtech & Developers Pvt. Ltd.- - ITA No. 2102/Del/2012 dt. 11.3.2016 Prestige Estate Projects Pvt. Ltd. v. DCIT (2010) 129 TTJ 680 (Bang.) 5. We see no infirmity in these findings ..... X X X X Extracts X X X X X X X X Extracts X X X X
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