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2017 (1) TMI 1210 - AT - Income TaxApplicability of 44BBB(2) - rejection of books of accounts - Held that:- We uphold the findings of ld. CIT(A) that the assessee fulfilled all conditions prescribed u/s 44BBB(2) of the IT Act and also has followed one of the recognized methods prescribed for determination of stage of completion of contract as prescribed in para 29 of the Accounting Standard-7 "Construction Contracts" as recognized by the ICAI and the Central Government. Assessee has followed correct method of accounting in terms of Section 44BBB(2) read with Section 145(1) & (2) of the IT Act. Consequently we hold that the ld. AO's action of rejecting books of accounts in terms of Section 145(3) of the IT Act and assessing income u/s 44BBB(1) of the IT Act on presumptive basis is not justified, the order of ld. CIT(A) is upheld. Our view is fortified by Delhi ITAT judgment in the case of Royal Jordanian airlines (2008 (8) TMI 392 - ITAT DELHI-A ) which after dwelling over all relevant aspects of charging and mechanical provisions, statutory mandate, and jurisprudence of regular assessment vis-a-vis presumptive assessment and catena of judicial precedents as detailed in this order. - Decided against revenue.
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