TMI Blog2009 (7) TMI 708X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessing Officer made an addition of Rs.5,47,000 being the value of the work-in-progress. The matter was taken up in appeal before the Commissioner of Income-tax (Appeals) who even though held that the value of the work-in-progress ought to be disclosed and taken into account while working out the profits, yet in the special circumstances of the present case as the trade results have been accepted both in the previous year and the subsequent year, it will disturb the entire method adopted by the assessee and would lead to reopening and adjustment in the opening and closing stock of the previous and subsequent year. The Commissioner of Income-tax (Appeals), therefore, accepted the claim of the assessee. Tribunal upheld the order of Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee's correct income." 2. Briefly stated facts giving rise for filing of the present appeal are as follows : 3. The appeal relates to the assessment year 1987-88. The respondent-assessee is a registered firm. The previous year relevant to the assessment year 1987-88 ended on January 30, 1986. The assessee filed its return of income on March 31, 1987, showing the net income of Rs. 4,88,026 which was revised on August 7, 1989, showing the net income of Rs. 3,96,020. The assessee carried on the business on commercial scale as real estate developer, promoters, builders, property developers and selling agent of flats to be constructed thereon. It had entered into an agreement dated January 2, 1985 with the Reserve Bank of India for developing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gress. The fact remains that sale value of closing work-in-progress in question had already been included in the next year's income returned by the assessee and it stands duly assessed by the Revenue. In such a situation, the question is not of a scientific method to be applied this year. In fact, the question is whether or not the method of CIT should be applied for the past assessment years and subsequent assessment years for which assessments have been completed according to law." 4. The Revenue challenged the decision of the Commissioner of Income-tax (Appeals) before the Income-tax Appellate Tribunal without success. 5. We have heard Sri Shambhu Chopra, learned standing counsel appearing for the Revenue. 6. He submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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