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2015 (10) TMI 2059 - HC - Income TaxMethod of accounting - Whether the ITAT has erred in law in deleting addition of ₹ 12,34,000/- and directing to follow recognized method of accounting to compute the profits in the Real Estate business when the guidance notes of 2006 of ICAI require accounting of income on percentage completion method? - Held that:- The Delhi High Court in Commissioner of Income Tax v. Manish Build Well (P) Ltd. (2011 (11) TMI 35 - DELHI HIGH COURT) noted that project completion method is one of the recognized methods of accounting. It cannot be said that the project completion method followed by the assessee would result in deferment of the payment of the taxes which are to be assessed annually under the IT Act." The assessee-respondent had been consistently following one of the recognized methods of accountancy, i.e. project completion method, for computation of its income. In the absence of any prohibition or restriction under the Act for doing so, it cannot be held that the approach of the CIT(A) and the Tribunal was erroneous or illegal in any manner so as to call for interference by this Court. - Decided in favour of assessee.
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