Assessee real estate developer adopted project completion method of accounting. Assessing Officer held that as per provisions of accounting standard AS-7, assessee was required to mandatorily follow ‘percentage completion method’ and, accordingly, made addition to income of assessee. Tribunal held  that revenue had accepted project completion method of accounting adopted by assessee during previous years, further, in light of guidance note of AS-7 as applicable to real estate developers, assessee had itself changed method of accounting from project completion method to percentage completion method for subsequent years and effect of such change was revenue neutral for assessment year in question. Accordingly on facts, project completion method of accounting adopted by assessee during year was to be accepted and impugned addition was to be deleted. High Court affirmed the order of the tribunal. (AY. 2005-06)