In the case of real estate developer in [2022] 19 ITR-OL 33 (Kar) the AO replaced the computation of profits from completed construction method to percentage completion basis which the Court held impermissible for the following two reasons:
- the AO itself has recognized the completed contract method for computation in subsequent assessment years;
- the same does not impact the overall revenue of the Department meaning revenue neutral exercise.
https://dailytaxreporter.com/2022/01/19/department-cannot-effect-change-in-method-of-accounting-adopted-by-taxpayer-consistently/
