Assessee is engaged in business of construction as a builder /real estate developer. It maintained books of account on basis of project completion method. AO made certain addition to assessee’s income by applying percentage completion method.  Tribunal held that project completion method followed by assessee would not result in deferment of payment of taxes which were to be assessed annually under Act. Moreover, AS-7 issued by ICAI also recognized position that in case of construction contracts, assessee could follow either project completion method or percentage completion method. Tribunal further opined that there was no jurisdiction on part of AO to adopt percentage completion method for one year on selective basis. Accordingly the Tribunal deleted the  addition.  On appeal by the revenue the High Court affirmed the order of the Tribunal.