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2012 (10) TMI 842 - AT - Income TaxRevenue recognition – Accrual of income - Assessee is a non-resident – Providing onshore construction work and onshore services in connection in relation to power & gas projects - Following the percentage of completion method for contracts as per AS 7 – Assessee entered into two Onshore Construction Initial Work Agreement – During the year assessee had received advance and expenditure incurred shown as WIP – AO estimates 40% of contract was completed & addition made for 10% of receipt amount – Held that:- The assessee did not produce invoices before AO. Issue remit back to revenue with direction to allow another opportunity to the assessee to place on record all the invoices on the basis of which assessee had been receiving payments from EDC in respect of Contract If the entire payment received by assessee during the year is in respect of said agreement and is in respect of work done under that agreement then the project having completed more than 20% will be liable to be assessed to that extent during the year under consideration and appropriate assessment will be done by the AO with regard to year under consideration. Issue remand back to AO
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