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2010 (2) TMI 71 - HC - Income TaxConstruction Contract – completed or incomplete project method of accounting - While completing the assessment, the assessing officer adopted the incomplete project method of accounting and thereby estimated an additional income with regard to the assessee's incomplete project shown as work-in-progress. – CIT(A) and ITAT decided in favor of assessee - Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that the Assessing Officer was not justified in computing the profits from the assessee's business of construction contracts including the profits accrued on the incomplete projects? – held that - Tribunal and the Commissioner of Income Tax (Appeals) have concurrently held that from the inception the assessee had been following the completed contract method of accounting and the returns were filed only adopting the said method of accounting till the assessment year in question and there was no defect or inconsistency in the said accounting method adopted by the assessee. As pointed out by the revenue, the assessee has also shown the incomplete project in the form of work-in-progress in the books of accounts upon which the assessing officer estimated the income at the rate of 10%.– Decision in CIT v. N.M.Associates, [2008 -TMI - 12590 - MADRAS High Court ]distinguished– Decision of Supreme Court in CIT v. McMillan & Co.[ 2010 -TMI - 75376 - SUPREME COURT] followed - If the method adopted by the assessee is consistent and regular, the revenue should not have insisted the assessee to adopt a particular method of accounting or valuation.
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