TMI Blog2017 (9) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... ction (2) of section 44AA or that the assessee's accounts were not audited or the audit report not furnished before the Assessing Officer. The Commissioner and the Tribunal also held that the Assessing Officer was wrong in holding that the accounting standard AS- 7 did not apply to the assessee. No reason to interfere since no question of law arises. Assessing Officer, as recorded by the Tribunal has not found any major defects in such accounts. The Commissioner (Appeals) in fact elaborated that the assessee had the past experience from which it could estimate the total cost and had presented figures to show the percentage completion of the project. These figures match with the actual income and expenditure statements of the subsequent f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act, the income of the assessee would be taxed at a presumptive rate of 10% of the amount paid or payable to the assessee or any person on behalf of the assessee under subsection (2) of section 44BBB of the Act if the assessee satisfies certain conditions therein. Assessee could claim lower profit and gain than what is referred in sub-section (1). Assessee availed of such provision of sub-section (2) of section 44BBB of the Act while filing the return before the Assessing Officer. The Assessing Officer was not satisfied on various grounds, principally, that the assessee had followed the accounting system of AS-7 which was not applicable, the assessee should have offered tax in terms of section 44BBB of the Act and lastly that in any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e relied and referred to the decision of this Court in case of Commissioner of Income-Tax vs. Advanced Construction Co. (P) Ltd. reported in 275 ITR 30 and reversed the order of the Assessing Officer. 4. The Tribunal on somewhat similar grounds rejected the Revenue's appeal. Hence, the present appeal. 5. Section 44BBB of the Act reads as under: 44BBB. Special provision for computing profits and gains of foreign companies engaged in the business of civil construction, etc., in certain turnkey power projects.- ( 1) Notwithstanding anything to the contrary contained in sections 28 to 44AA, in the case of an assessee, being a foreign company, engaged in the business of civil construction or the business of erection of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or to any person on behalf of the assessee on account of such civil construction, erection etc work. Sub-section (2) of section 44BBB of the Act would however give an option to the assesee to claim lower profit if the assessee keeps and maintains the books of accounts and other documents as provided in subsection (2) of section 44AA of the Act and gets the accounts audited and furnishes the audit report as required under section 44AB. The AO thereupon would frame an assessment of the total income of the assessee under sub section (3) of section 143 of the Act. In the present case, the CIT (Appeals) as well as the Tribunal both held that the assessee had fulfilled all requirements of sub-section (2) of section 44BBB of the Act. It is not th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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