Addition set aside as Percentage of Completion Method on real estate accounting duly followed ICAI guidelines

Relationship Properties Private Limited Vs DCIT (ITAT Mumbai) ITAT Mumbai held that addition based on ad hoc method not justifiable since assessee followed Percentage of Completion Method for revenue recognition adhering to guidance note on Accounting of Real Estate Transactions issued by ICAI. Accordingly, appeal of assessee allowed. Facts- The assessee is engaged in the real estate development, entered into a Development Agreement dated 28th March, 2011 with ETA Star Info Park, ETA Karnataka Estates Limited and ETA Constructions (India) Limited for development of a residential complex at Bi...