Project Completion Method is Right Method Prescribed by ICAI for determining Profit, Eligible for Deduction u/s 80IB(10) of Income Tax Act: ITAT [Read Order]

The Delhi bench of the Income Tax Appellate Tribunal (ITAT) upheld the use of the project completion method for determining profit eligible under Section 80IB(10) of the Income Tax Act. \r

The Commissioner of Income Tax (Appeal) affirmed that the method adopted by the assessee was appropriate, criticizing the Assessing Officer's attempt to change it without valid reason. The ITAT noted that the project completion method, endorsed by the ICAI and consistently used by the real estate developer assessee, was correct. \r

Citing precedent from PCIT Vs. Shipra Estate Ltd. & Jai Krishan Estate Developers Pvt. Ltd., the tribunal dismissed the revenue's appeal, finding no substantial legal question. The bench, including Dr. B. R. R Kumar and C.N Prasad, upheld the CIT (A)'s decision on the matter.