Assessee-company, engaged in developing property and constructing residential apartments and commercial complex, filed its return of income declaring loss. Assessing Officer held that  the assessee had not adopted Percentage completion method  for recognition of revenue as per AS-9.  Assessee had submitted calculation of revenue recognition following percentage completion method (PCM) and had shown that percentage completion was only 20.03 per cent.  Assessing Officer held that n level of construction was more than 25 per cent of construction cost and more than 10 per cent of agreement value had been realized, and revenue would be recognizable from above project during relevant period as per AS-9 and, accordingly, income had been added back. Held that   as per clause (5) of Guidance Note issued by ICAI, cost of construction and also saleable project area needs to be taken into account while recognizing revenue under PCM. Since saleable area for year under consideration as a percentage to total saleable area was much less than 25 per cent and Assessing Officer had considered revalued value of cost of land for purpose of arriving at total project instead of actual cost of land, issue was to be remitted back to Assessing Officer with a direction that percentage of cost and saleable area had to be recomputed in accordance with para 5.3 of ICAI Guidance Note on Real Estate Transactions. Matter remanded. (AY. 2015-16)