TMI Blog2005 (2) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of CIT v. Khoday Distilleries is applicable to the assessee s case inasmuch as the facts and circumstances of the assessee s case are different from that of the case of Khoday Distilleries . ( ii )That the learned CIT(A) erred in not appreciating that the facts of the assessee s case are similar to that of the case of M/s. United Property Developers Pvt. Ltd. wherein on similar circumstances, the ITAT, Bangalore in its order in ITA No. 546/Bang./97, dated 10-9-1999 has confirmed the estimate of income made by the Assessing Officer. 2. The assessee is a partnership firm doing the business of constructing flats and developing sites, declared an income of Rs. 2,10,520 on 25-7-1997. The return was processed under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r estimated the income as the projects were substan-tially completed and occupation certificate was issued by the Municipal Corporation. Our attention was drawn to pages 4, 5, 8 and 9 of the order of the Assessing Officer. Mr. Kincha, the learned AR argued that this is a case of application of provisions of section 145. It was contended that I am an old assessee, following Project Completed Method, which was accepted by the department in all the previous years and no fault was ever found by the department. It was strongly contended that the project was incomplete and out of 58 villas, only 24 villas were completed at the relevant time. The learned AR, in nutshell, supported the order of the first appellate authority and relied upon the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars. The appellant was having seven construction projects and two site development projects in hand during the relevant assessment years and were not complete at all and were at the various stages of construction/development. There is no dispute to the fact that the income returned was only on account of other receipts. The Assessing Officer adopted the fixed percentage of profit method in respect of two of the seven construction projects and also in respect of both the sites and added to the income. The learned counsel for the assessee produced the copy of earlier assessment years i.e., assessment years 1993-94 and 1994-95 before the first appellate authority and also relied upon the decision of the Hon ble High Court of Orissa in CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h 31, 1968. Since the performance of the contract was spread over a number of years, the assessee made up its accounts relating to this work on what is commonly known as "complete contract" basis as the real profit could be determined only at the end of the contract. The account books which were maintained in the regular and usual course of business were audited by qualified chartered accountants of West Germany. Initially, the assessments for the first two years were completed by the ITO by accepting the net profit arrived at on "complete contract" basis. The Commissioner set aside those assessments. The Tribunal restored the orders of the ITO and set aside the orders of the Commissioner. On reference, the orders of the Tribunal were appro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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