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2017 (1) TMI 942 - AT - Income TaxMethod of account - project completion method - Addition of relatable to the reversal of the excess profits recognised as income in the post period - Mentioning that 16% is a higher side, the assessee proceeded to rectify the same by reducing 4% and offering in the return only 12% of profit. - Held that:- There is no dispute on the fact of completion of the assessments of the earlier years to which the said amount of ₹ 20,46,764/- belongs. In our view, this kind of rectification / reversal of entries constitutes the amendment to the account unauthorizedly done by the management and it is outside the Accounting Standard (AS)-7, relied upon by the assessee. In the scheme of percentage completion method adopted by the assessee and the adjustments of this in the earlier assessment years is not proper as the final assessments, if any, can be done in the year in which the project is conclusively completed ie AY 2005-06. We find no mistake in the order of the CIT on this issue. Therefore, in our opinion, the CIT (A)'s order on this issue is fair and reasonable and it does not call for any interference. Accordingly, grounds raised by the assessee are dismissed. - Decided against assessee
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