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TMI BlogIncome recognition rules and accounting standards for revenue from construction contracts were at issue....Income recognition rules and accounting standards for revenue from construction contracts were at issue. The assessee argued that AS-9 was not applicable as it specifically excludes revenue from construction contracts. Section 43CB, introduced with effect from 01.04.2017, mandates revenue recognition based on ICDS-3 for construction contracts. ICDS-3 allows recognizing revenue using the regular method for contracts commenced before 31.03.2016 and not completed by that date. As the assessee's residential project commenced before 31.03.2016 and was ongoing, neither AS-9 nor Section 43CB applied. Consequently, the CIT(A)'s deletion of the addition was upheld, and the Revenue's appeal was dismissed by the Appellate Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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