Acceptance of Project Completion Method followed by Assessee consistently by AO not erroneous

Parth Developers Vs PCIT (ITAT Indore)

The case of Parth Developers Vs PCIT at the ITAT Indore revolves around the conflicting tax accounting methods – the Project Completion Method versus the Percentage Completion Method. The central argument pivots on whether the Pr. CIT can invoke section 263 of the Act, given the consistent use of the project completion method by the AO.

Facts of the case:

1. The assesse is a partnership firm carrying business of Real Estate Developer.

2. For the AY 2015-16, the case was selected for limited scrutiny through Computer Assisted Scrutiny Selection (CASS) for the following reasons:

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