assessee
is following project completion method and not percentage completion
method. The AO also observed that the project completion method has no
existence ... percentage completion method
because according to AS-7, revised in 2002 with effect from 01.04.2003 the
`Completed Contract method' or `Project Completion method
either the percentage of completion method or the completed
contract method may be used. When a contractor uses a
particular method of accounting ... years to
be completed, therefore, the income should be taxed year to year basis on
percentage completion method of the project. In assessee
appellant has followed work
completion method. However, as per AS-7 accounting principals
refers only percentage completion method to be followed in such
type ... project completion, entire cost
is carried forward as closing stock till the date of completion of
entire project and revenue is recognized when the project
either the percentage of completion method or the completed
contract method may be used. When a contractor uses a
particular method of accounting ... years to
be completed, therefore, the income should be taxed year to year basis on
percentage completion method of the project. In assessee
completion method, or as we also commonly call, the Completed
contract method, income accrues only when the contract is completed or
substantially completed. Substantially completed ... 2010
income accrues on the completion or substantial completion of the
project. The essence of the Project completion method is the completion
or the substantial
project is complete or substantially complete. In the present cases, the assessees are simultaneously constructing multiple projects and accounts are separately maintained for each project ... whether interest expenditure identifiable with a particular project, in the case of an assessee following project-completion method of accounting, is to be deducted
started this project in F.Y. 2010-11. For
recognizing revenue from this project, the appellant company is following
project completion method ... regularly followed method of accounting of project completion
method and has applied percentage of completion method for recognizing
revenue. However, while doing so, the Assessing
choice either to follow Project Completion Method or Percentage
completion method, the assessee chose Project Completion
Method. During the search, architect's report ... Thus it is amply clear that percentage complete method and
completed contract method were both acceptable method
and accounting of construction contract in the impugned
accounting
ccounting of the company from
from, Project Completion Method to Percentage
Completion Method, while computing income of the assessee.
3. We have heard rival ... Completion
Method is a well recognised and accepted method of accounting. This method is
consistently and regularly followed by the assessee since this project
business income from both the projects. Assessee recognized income
from both the projects based on the 'project completion method' consistently
followed over ... Link Corner Project only leaving the income
from other project to be recognized based on the 'project completion method' of
accounting. Why this
