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 Co

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