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2009 (9) TMI 619 - AT - Income TaxAS-7 – Construction Contract - Method of accounting - The Hon'ble Supreme Court in the case of CIT vs. Hyundai Heavy Industries Co. Ltd. (2007 -TMI - 6562 - SUPREME Court), had held that percentage of completion method prescribed in AS-7 was appropriate for construction contract spread over several years, hence, method of accounting followed by the assessee was correct - The mobilization advance received by the assessee, then it is merely in the nature of advance till rendering of services when the same is being adjusted from the running bills by the payer, hence, the whole mobilization advance cannot be treated as income, though the payer deducted tax at source; as such, the payer is bound to deduct tax at the stage of payment or credit in the account of payee, whichever is earlier - Revenue's appeal stands dismissed.
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