Answers On Topic: project completion method
The appellant is an Association of Person engaged in the business as builder and developer. Search action was conducted in the case of Group of cases on in the Aug 2016. A Notice u/s 153A was issued and duly served upon the assessee requiring the asseeseee to file return of income including undisclosed income. The appellant e-filed the return of income for A.Y.2015-16 . The assessee was developing a single project and the developer claimed to be following completed contract method of accounting for the purpose of revenue recognition. During the course of hearing various details were called for and…
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Assessee is AOP engaged in the business of construction and developing of housing project . Assessee is consistently following project completion method for recognizing revenue . In this method , the assessee is offering the Revenue when the possession of the unit is givne to buyer after obtaining completion certificate. During the course of search action nothing incriminating documents have been found . The Assessing Officer during the course of search recorded the statement of member of AOp and asked details of the project and about advances received from unit purchasers. On the basis of the details question was asked…
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Sec. 145(3) and assessment U/Sec. 143(3) of the Act.