| COURT: | ITAT Indore |
| CORAM: | Kul Bharat (JM), Manish Borad (AM) |
| SECTION(S): | 145, 43CB |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Change in method of accounting, completed contract, percentage completion method |
| COUNSEL: | P. M. Choudhari |
| DATE: | August 3, 2018 (Date of pronouncement) |
| DATE: | August 7, 2018 (Date of publication) |
| AY: | 2012-13, 2013-14 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 43CB/ 145: Entire law on taxation of real estate construction contracts explained in the context of 'completed contract' vs. 'percentage completion' with reference to Accounting Standards AS-7 and AS-9 and all important judgements on the point | |
In our considered view, provisions of AS7 cannot override the provisions of section 145 in so far as the computation of business income under the Income Tax Act for the purpose of determining income is concerned. In the instant case, we find that the learned Assessing Officer has brought no material on record to show that the system of accounting adopted by the assessee for the year under appeal was not consistently followed y the assessee or the system adopted was a defective system. In our considered view, even a project completion method is also a recognized system of accounting. Simply the Institute of Chartered Accountants of India has recommended the percentage completion method does not mean that project accounting or the same is a defective system of accounting
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