Construction Business- No Revenue recognition if substantial risk & reward not transferred to buyer

Brief of the Case ITAT Ahmedabad held in case of ITO vs. M/s Tirupati Enterprises held that the revenue has to be recognized only at the time when substantial risk and reward are transferred to the buyer by the seller. Since the construction was incomplete, the property was not ready for sale. The buyers did not pay full installment. It was only the advance booking amount that was paid by the buyers. The A.O. has without any basis taken the rate of 8% on the work in progress shown by the appellant. The appellant has rightly followed the method of accounting as prescribed in AS-9 of the ICAI. F...