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 methods 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 Constructions (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)]