ITAT Ahmedabad: Section 43CB vs AS-7/AS-9 on Revenue Recognition for Real Estate Developers

DCIT Vs Aaryan Buildspace LLP (ITAT Ahmedabad) ITAT Ahmedabad order on Applicability of section 43 CB vs AS-7, AS-9, recognizing revenue on transfer of ownership for real estate developers Relevant Legal Provisions Section 43CB of the Income-tax Act, 1961 Introduced by Finance Act, 2018, effective from 01.04.2017 (retrospective). Applicable to profits and gains from construction contracts or contracts for providing services. Mandates revenue recognition on a Percentage Completion Method (PCM) basis as per ICDS (Income Computation and Disclosure Standards) notified under Section 145(2). Secti...