Tribunal held that the  assessee recognized revenue from incomplete projects on proportionate completion method by taking into account percentage of work done in project. Assessee was following this method of accounting continuously from past several years and same had been accepted by revenue. During year under consideration, AO determined income from project by taking into account advance received by assessee from its project on basis of gross profit declared by assessee from its completed projects without any change in facts and circumstances.

Tribunal held that once assessee was following method of accounting which was in accordance with method prescribed by ICAI for recognition of revenue from kind of projects assessee was undertaking and such method had been accepted by department in earlier year, there was no reason for AO to deviate from method followed by assessee without any change in facts and circumstances. Accordingly, the Hon’ble Tribunal ruled in favour of the assessee. (AY. 2008 -09)