The amount of unbilled sales if represents revenue booked in the accounts on the percentage completion method for incomplete contracts at the end of the year and corresponding expenditure incurred in relation to the unbilled sales including subcontract charges is also provided for in the accounts and this method is followed by the assessee consistently in the earlier years then the claim of the assessee is allowable. (AY. 2004-05)
Dy. CIT v. Stewarts and Lloyds of India Ltd. (2019) 74 ITR 677 (Kol.)(Trib.)
S. 145 : Method of accounting–Percentage completion method– Corresponding expenditure incurred in relation to unbilled sales–Sales include sub contract charges-Provision to be made–Rule of constancy to be followed.