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2021 (11) TMI 713 - HC - Income TaxRejecting the method of accounting adopted by the Appellant-Assessee for the AYs - Assessee’s method of accounting for the immediate two succeeding AYs i.e. 1990-91 and 1991-92 was accepted - Assessee adopted the “completed contract method” - HELD THAT:- In the present case, with the Revenue having accepted the Assessee’s method of accounting for AYs 1990-91 and 1991-92, there is no reason for it to reject it for the earlier three AYs particularly considering that it is the same contract spread over the five AYs. The impugned order of the ITAT on the above issue is unsustainable in law and is hereby set aside. The corresponding orders of the CIT (A) and the AO on the same issue are set aside as well. The question framed is answered in favour of the Assessee and against the Department by holding that the Department is not right in rejecting the accounting method followed by the Assessee for the AYs in question.
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