TMI Blog2023 (6) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be added to the costs of contract, while recognising revenue? - HELD THAT:- Assessee has adopted the percentage completion method, as per Accounting Standard 7, framed by the Institute of Chartered Accountants of India (ICAI). As is evident from a perusal of the impugned order, the rationale for not including operation and maintenance expenditure given by the Tribunal was, that these expens ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given in the application, the delay is condoned. 3. The application is disposed of. ITA 218/2023 4. This appeal is directed against the order dated 27.04.2020 passed by the Income Tax Appellate Tribunal [in short, Tribunal ] concerning Assessment Year (AY) 2010-2011. 5. The central issue which arose for consideration before the Tribunal was, whether the operation and maintenance expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g through the entire facts of the case, we find that the three different phases of the work which are totally separate in execution. Keeping in view the fact, that the O M phase cannot be a part of the construction activity as the O M phase involves the supply of water to the residence giving connections and monitoring the connections which is clearly a post construction activity, we hold that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... truction of activity of rehabilitation phase, we hereby hold that the amount pertaining to O M phase needs to be separately considered while determining the profits out of the construction activities. 7. It is relevant to note, that the respondent/assessee has adopted the percentage completion method, as per Accounting Standard 7, framed by the Institute of Chartered Accountants of India (IC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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