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2022 (7) TMI 1310 - HC - Income TaxRevenue recognition - Accounting method - determination of income on completion of its projects - whether percentage computation method should be followed instead of project completion method followed by the assessee - whether Tribunal was justified in law to accept the accounting method followed by the assessee as accounting standard-9 (AS-9) instead of accounting standard-7 (AS-7) despite the fact that the assessing officer arrived at a conclusion finding that the assessee is a contractor and not a builder after analysing the various aspects of the business of the assessee? HELD THAT:- After taking note of the decision in Bilahari Investment (P) Ltd. [2008 (2) TMI 23 - SUPREME COURT] and that of Manish Build Well (P) Ltd.. [2011 (11) TMI 35 - DELHI HIGH COURT] held that the assessee has been consistently following one of the recognised methods of accounting that is project completion method for computation of income and in the absence of any prohibition or restriction under the provisions of the Income Tax Act. For doing so it cannot be held that approach of the CIT(A) and the tribunal was erroneous or illegal in any manner so as to call for interference by Court. Accordingly, the appeal filed by the revenue was dismissed. In the case on hand the CIT(A) as well as the tribunal have noted the aforementioned decision and also the fact that the method of accounting, namely, the project completion method was followed by the assessee and has been accepted by the Department and, thus, by applying the principle of consistency, the appeal of the revenue is dismissed. Thus, we find that there is no error in the order passed by the tribunal nor any substantial question of law arises for consideration in this appeal.
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