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

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