ITAT explains law on revenue recognition by property developer under percentage completion method

Vastukar Township Pvt. Ltd Vs. DCIT (ITAT Jaipur) The issue in dispute relates to recognition of revenue by the assessee, which has been categorized into two broad categories – revenues where the assessee has entered into registered sale deeds with the plot buyers and secondly, where certain advances have been received from the plot buyers, where the assessee is following percentage completion method of accounting. The assessee is engaged in development of residential township project “South City” located in village Jaisinghpura/Rampura Bujurg, near Chaksu, Tonk road, Jaipur in collabor...