Profits may be recognized on sale even if Assessee follows project completion method if all risk and reward been passed on

Brief Facts of the case- The assessee firm is a builder and developer and is assessed in the status of AOP. During the year under consideration, the assessee was developing a residential project which involved construction of 182 flats. The assessee did not disclose any income out of these projects on the plea that it was following ‘project completion method’ and offered income on these in AY 2010-11 The A.O., however, noticed that the assessee has received major portion of advances and also completed major portion of the construction activity by 31-3-2008, The A.O. further noticed that t...