Assessee was offered a construction contract pertaining to rehabilitation and implementation of water supply which consisted of three phases, namely, Study Phase, Rehabilitation Phase and Operation and Maintenance (O&M) Phase for a period of five years.  AO alleged short recognition of contract revenue and observed that entire contract value including revenue from (O&M) phase had to be considered while calculating percentage of completion method on ground that it was a composite contract and, third phase could not be considered separately. Tribunal held that  the assessee had raised separate invoices for O&M phase on a regular basis and same had been duly accounted in years in which it was received-Whether since O&M phase could not be a part of construction activity as O&M phase involved supply of water to residence giving connections and monitoring connections which was clearly a post construction activity, amount allotted for O&M phase could not be included in determining percentage of completion method in determination of profit out of construction activities. (AY. 2010-11)