Assessee is  engaged in real estate  business. Assessee converted its land held as capital into stock-in-trade and constructed building on this land.  During, relevant assessment year, assessee entered into agreement for sale of these premises and for purpose of revenue recognition followed percentage completion method of accounting. Assessing Officer rejected said methodology and estimated business profits on sale of land as well as profits from construction activities separately on ground that land was converted into stock-in-trade and premises including undivided share in land was sold to various buyers during year. On appeal the Tribunal held that project was completed to extent of 11 per cent during relevant assessment year as certified by architect and same was recognised as revenue in books of account. Since method adopted by assessee was recognized method of accounting as per accounting standards issued by ICAI and this method was consistently followed in subsequent years to recognize revenue, Assessing Officer was not justified in rejecting methodology adopted by assessee for revenue recognition.  (AY. 2005-06)