Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (10) TMI 349 - AT - Income TaxApplicability of AS-7 - project completion method – The change in accounting method - Assessee contended that the authorities below are not justified in adopting the percentage completion method for recognition of revenue on year to year basis, on the ground that the percentage completion method is not acceptable under the Income Tax Act, 1961, particularly when the same has not been denied under the Act. Held that:- CIT(A) misdirected himself to hold that the assessee was not a developer of real estate but merely a contractor. This fact was never observed by the Assessing Officer when he readily agreed to the proposition that a contractor cannot be subjected to tax on percentage method and the estimation was an advance against sales. Therefore, having contradicted their own findings the respective authorities have brought to tax the incomes which otherwise would have been rendered to tax by the assessee in respective AYs in accordance with the provisions of the I.T.Act that could not require any interference. - The impugned orders of the learned CIT(A) are set aside and Assessing Officer has to accept the returns as filed by the assessee in the respective AYs under consideration - Appeals of the assessee are allowed - in favour of assessee.
|