TMI Blog2023 (12) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... t has been framed after thorough scrutiny and method of accounting has been accepted by the Assessing Officer. On such facts Rule of Consistency squarely applies. See Excel Industries Ltd [ 2013 (10) TMI 324 - SUPREME COURT] In so far as applicability of Accounting Standard Guidance Note is concerned, it is pertinent to mention that the same has not been notified by the Central Government for the purpose of section 145(2) of the Act. Therefore, no adverse inference can be drawn. See Para Buildtech India (P) Ltd [ 2015 (11) TMI 1217 - DELHI HIGH COURT] Also in the case of Bilhari Investment Pvt Ltd [ 2008 (2) TMI 23 - SUPREME COURT] to decide on choice of method of accounting every assessee is entitled to arrange its affairs and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the Assessing Officer referred to the Accounting Standard for real estate project issued by Institute of Chartered Accountant of India which provided that w.e.f. 01.04.2012 income has to be accrued in respect of all real estate on POCM. 6. The Assessing Officer accordingly, recomputed profitability of the assessee applying POCM and made addition of Rs. 8.42 crores. 7. The assessee carried the matter before the ld. CIT(A) and convinced the ld. CIT(A) that the Project Completion Method is applicable. It was further contended that the assessee has been consistently following the PCM since A.Y 2010-11 and in all the preceding years, method of accounting has been duly accepted by the Assessing Officer in the assessment framed u/s 143(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td [supra] wherein the Hon'ble High Court has held as under: (i) Section 145 (1) of the Act states that the income chargeable under the heads Profits and gains of business or profession shall be computed in accordance with either cash or mercantile system of accounting regularly employed by the Assessee . It is only with effect from 1st April 2015 that a change has been brought about in Section 145 (2) which permits the central government to notify in the Official Gazette from time to time the income computation and disclosure standards to be followed by any class of Assesses or in respect of any class of income. That change is prospective and in any event does not apply to the case on hand. (ii) The settled legal position a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esults only when contract is completed. This method leads to objective assessment of the results of the contract. 17. On the other hand, percentage of completion method tries to attain periodic recognition of income in order to reflect current performance. The amount of revenue recognised under this method is determined by reference to the stage of completion of the contract. The stage of completion can be looked at under this method by taking into consideration the proportion that costs incurred to date bears to the estimated total costs of contract. 18. The above indicates the difference between completed contract method and percentage of completion method. 19. In the judgment of the Bombay High Court in Taparia Tools Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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