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The revenue had accepted the method of accounting adopted by the assessee for the previous years and in the light of guidance note provided that AS-7 is applicable to real estate developers, assessee itself has changed the method of accounting and for the subsequent years, it has changed from Project Completion Method to Percentage Completion Method in the subsequent year and as such, there is revenue neutral in the assessment year in question.

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Sec.  145 of Income-tax Act, 1961— Method of accounting & Sec. 22, 28(i) & 56 of Income-tax Act, 1961—Business income—CIT vs. PRESTIGE ESTATE PROJECTS PVT. LTD.[2020] 25 ITCD Online 004 (KARN)

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