Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1564 - AT - Income TaxRevision u/s 263 - assessee has not recognized any income of the project for any earlier assessment year or succeeding assessment year applying AS-9 - Held that:- Once it is held that the assessee is following project completion method consistently and it has followed the same during the current assessment year in which the project has been completed, there is no question of recognizing any income for any earlier or succeeding assessment year. The ld. CIT’s observation that the loss does not seem to have been examined properly is also a surmise without any cogent reasoning. Furthermore, the ld. CIT has also directed to examine the allowability of expenses. For this also, no cogent reason has been mentioned by the ld. CIT. We note that the A.O. has examined the expenses incurred and made some disallowances also. Hence, the ld. CIT’s direction to examine the expenses is a direction for making a roving enquiry not permissible u/s. 263 of the I. T. Act. Hence, we set aside the direction of the ld. CIT qua examination of the method of accounting for revenue recognition and examination of expenditure. As regards the ld. CIT’s observation to examine the service tax, TDS and MVAT provision and their applicability, the ld. Counsel of the assessee’s submission is that these are not applicable and have been complied with to the extent necessary. In this regard, we note that the A.O.’s order is silent on these issues, hence, if the ld. CIT has given a direction to examine these issues, no prejudice will be caused to the assessee. Hence, we uphold the order of the ld. CIT to this extent only. - Decided in favour of assessee partly.
|