TMI Blog2010 (12) TMI 1054X X X X Extracts X X X X X X X X Extracts X X X X ..... culation of annual profits on the basis of receipts was held to be justified - Hence, fully concur with the conclusion of the Tribunal - Thus, the appeal fails and the same is dismissed against of revenue. - 1030 of 2010 - - - Dated:- 6-12-2010 - MR. JUSTICE F.M. IBRAHIM KALIFULLA, MR.JUSTICE N.KIRUBAKARAN For Appellant : Mr.T.Ravikumar Judgment F.M.IBRAHIM KALIFULLA, J. The Revenue has come forward with this appeal raising the following substantial question of law: "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 detecting the completed contract method for accounting followed by the assessee for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rieved against the same, the Revenue has come forward with this appeal. 5. We heard Mr.T.Ravikumar, learned standing counsel for the appellant. 6. Having perused the order impugned as well as that of the lower authorities, as noted earlier, indisputably the respondent/assessee was all along following the completed work method for accounting its income from its business of construction. It is also not in dispute that for the first item for the assessment year 2003-2004, the Assessing Authority chose to take a different view and held that by virtue of Section 5 of the Act, inasmuch as the respondent/assessee was following mercantile system of accounting, it was bound to disclose whatever profit earned or accrued up to the relevant acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that score. In such circumstances, if the respondent/assessee was regularly following the completed contract method and had not given scope for any complaint in any of the earlier years, it was unnecessary for the Assessing Officer to invoke Section 145(3) of the Act. In order to meddle with the said pattern of accounting, the distinction made out by the Tribunal in regard to the decision of this Court in Commissioner of Income-tax vs. N.M.Associates reported in 256 ITR 141 is also perfectly justified, inasmuch as, in the said decision, indisputably, the assessee did not maintain proper accounts, which apparently persuaded the Assessing Authority to invoke Section 145(3) of the Act, by which, the calculation of annual profits on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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