disclosure standard III
notified under sub-section (2) of section 145 of the Act. Relevant
extracts of section 43CB of the Act are reproduced ... standards notified under
sub-section (2) of section 145
(emphasis supplied)
19. The legislative intent behind insertion of section 43CB in the statute
from these transactions must
be recognized. Further a specific provision of section 43CB for such projects has
been introduced ... appellant was issued notice u/s 142(1) on 25.08.2022 asking
whether revenue was offered in accordance to section 43CB . In response to
the same
mandatory or not for the assessment years prior to insertion
of section 43CB ... percentage completion method has been made
compulsory by insertion of section 43CB of the Act and is
mandatory only for assessment years
estate developer,
was required to follow the Percentage Completion Method under Section 43CB of the Act
or could recognize revenue based ... ICAI Guidance Note.
8.1. The AO's reliance on Section 43CB of the Act is misplaced because this provision is
applicable only to construction
onwards. The said
section reads as under:-
7
Hindustan Construction Company Limited
"Section 43CB: (1) The profits and gains arising from a construction
contract ... there is no conflict between sec.
43CA and ICDS-III as understood by Ld DRP. He submitted that sec.
43CB(1) itself provides for determination
assessee also
submitted that the ld.CIT(A) did not apply Section 43CB of the Act in the present
case. The said section ... Accordingly, in terms of the statutory mandate of section 43CB of the Act, which
is applicable to the assessment year under appeal, recognition
mputed on an estimated turnover of 2.74,20,59,318/-
under Section 43CB of the Act, on mere assu mp tions and
presu mp tions ... tion
me thod f ollo wing ICDS, as mand ated by section 43CB of the
Act. Appellan t sub mitted bef ore that sec tion
Assessing Officer [hereinafter referred to as "AO"] under Section 43CB of the
Income Tax Act, 1961 [hereinafter referred ... construction contract", its income should have been computed
under Section 43CB of the Act, which mandates revenue recognition on a
Percentage Completion Method
holding the addition of Rs.
30,03,163.00 by applying Sec. 43CB of the Act without the considering the fact
that same is not applicable ... project started prior to 01.04.2017.
4. That Sec 43CB is applicable only where there agreement exist between the land
owner and developer whereas
retrospective effect w.e.f. 1.4.2017 by way of insertion of Section 43CB
for the purpose of computation of income from construction and service
contract ... cannot ignore that the legislature, by Finance
Act, 2018 , has inserted Section 43CB to the Act w.e.f. 1.4.2017, which
provides the profits
