Assessee is engaged in business of development of property It had followed project completion method which had been accepted by department in assessment year 2014-15. For the assessment year 2015-16 the Assessing Officer held that assessee was a mere contractor and it ought to have adopted percentage completion method as per AS-7. CIT (A) held that the assessee had been consistently following project completion method which had been accepted by department reversed order passed by Assessing Officer. Order of CIT (A) was affirmed by the Tribunal. On appeal by Revenue, High Court affirmed the order of the Tribunal. (AY. 2015-16)
PCIT v. Salarpuria Simplex Dwelling LLP. (2022) 289 Taxman 264 / 216 DTR 425 (2023) 455 ITR 712(Cal.)(HC)
S. 145 : Method of accounting-Construction and development of property-Project completion method-Principle of consistency-Not justified in adopting percentage completion method.