Dismissing the appeal of the revenue the Court held that ; Dept’s argument that assessee should have declared profit on percentage completion method because according to AS-7, revised in 2002 with effect from 01.04.2003, the ‘Completed Contract method’ has been scrapped & ICAI guidelines prefer the percentage completion method is not acceptable . Project completion method s held to be valid . Deletion of addition in respect of advance received from customers is held to be valid .( ITA No. 289/Agra/2017, dt. 16.05.2019)(AY. 2012-13)
ITO v. Shanti Construction (2019) 73 ITR 115/ 201 TTJ 41 (UO) (Agra)(Trib.)www.itatonline.org
S. 145: Method of accounting -Project Completion Method-Percentage Completion Method- Project completion method is held to be valid- Deletion of addition in respect of advance received from customers is held to be valid . [ S.145(3) ]