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2012 (7) TMI 453 - ITAT, MUMBAIRejection of books of accounts u/s 145(3) of the I T Act - Applicability of AS-1 / AS-7 (revised) - addition by way of net profit @ 8% on cost incurred on closing balance of WIP - assessee is following this uniform method of accounting since beginning and the revenue has accepted the same for the AY 2004-05 while passing the assessment u/s 143(3) – Held that:- Contract of installation of elevators/lifts, assesseee’s responsibility and liabilities extent even after the execution work is completed - project cannot be treated as completed until and unless the execution of installation work is completed by the assessee - receipts of advance or part payments of the contract amount itself would not necessary means that the project is completed even to the extent of percentage of receipt of the amount - authorities below are not justified in estimating the profits on percentage basis as per the work in progress shown by the assessee - in favour of the assessee
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