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2012 (12) TMI 362 - AT - Income TaxCompute profit u/s 44AE by rejecting the books u/s 145 - Whether AO applies presumptive tax rate in case where books are maintained by assessee - Assessee being builder regularly follows project completion method and book revenue only when possession of the constructed building is given - Same was accepted by revenue in earlier years – AO reject the books in view that revenue is to be recognized in the year in which it has been earned and the same cannot be postponed on the ground of following projection completion method - Held that:- As per AS-9 which gives the option of proportionate completion method and completed service contract method, out of which one is following by the assessee. AO rejected the books without any justification. Whereas project completion method followed by the assessee, and the entire profit of the project has been offered to tax by the assessee. Appeal decided in favour of assessee.
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