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TMI Blog2014 (1) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... red in law and on facts in deleting the addition of Rs. 7,68,000/-(A.Y.-2005-06), 8,56,000/-(A.Y.-2006-07)& 4,48,968/-(2007-08) made on accrual basis by the Assessing Officer after rejecting the project completion Method adopted by the Assessed as against the Percentage Completion Method prescribed by the ICAI under Accounting Standard 7." 4. During the assessment proceedings the AO observed that assessee is following project completion method in respect of property being constructed by it. It was observed by the AO that the revised Accounting Standard-7 issued by the Indian Institute of Chartered Accountants of India required assessee to adopt percentage completion method and project completion method prescribed earlier was scraped. The A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be recognized by adopting percentage completion method. Reliance was placed on the decision of Banglore ITAT in the case of Nandi Housing (P) Ltd vs. DCIT 2 SOT 395. In respect of decision of Tirathram Ahuja Pvt. Limited vs. CIT relied by the AO assessee's submission was that the same cannot be applied in case of assessee because in that case assessee was engaged in contract work whereas in the present case assessee is a builder. It was further stated that in the case before the Delhi High Court assessee has incurred expenditure of Rs. 13.43 lacs against which it has received 11.11 lacs and work was abandoned due to war between India and Pakistan and further in the same case assessee was unable to determine the value of work in prog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer while placing relevance on such cases cannot be upheld. I also find force in the argument of Learned Counsel of appellant that appellant has shown the income in the year in which sale deeds have been executed and in A.Y. 2008-09 and 2009-10 appellant Company has offered income from the project and paid necessary taxes due on such income. Hence, there is no justification in making addition of estimated profit without giving any contrary observation to the fact that method adopted by appellant has resumed into under-assessment of real income. On apprehension and facts of the present cases and in the light of various judicial rulings relied upon by the assessee, I hold that addition made in the all the assessment years by way of estim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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