Builder to pay tax based on completion stage if significant risk and reward are transferred to buyer

M/s. A.N. Build well Pvt. Ltd. Vs. DCIT (ITAT Delhi) In the present case, the assessee is following Mercantile system of accounting therefore, the assessee was required to disclose the profit which accrued corresponding to the part of the work of the project executed by the assessee. The Assessing Officer was required to examine the agreement to sale for units and record whether any specified area of plot of land was allocated to the customers and significant risk relating to the said plot like price risk, any regulatory risk (related to state government or any local authority) was transferred...