AO cannot made additions by ignoring method of accounting

Advertisement Jalarani Jagruti Developers Pvt. Ltd. Vs DCIT (ITAT Mumbai) It is not in dispute that receipts in question have direct nexus with the business of the assessee and represent cash receipts against sale of shops and flats. is also not in dispute that the assessee follows project completion method of revenue recognition and that project was complete only in A.Y. 2008­-09. Since,-cash receipts have a direct nexus with the project of Jalaram Park, they have to be taxed only as income from the said project. The assessee has already recognized these receipts in its books of account w...