Tribunal held that; since in the project completion method, the entire expenses and the entire sales should be shown, it was necessary for the assessee to make provision for estimated expenditure to be incurred in subsequent years on account of minor or miscellaneous work. Accordingly\u00a0 the treatment of the assessee in respect of the estimated expenditure like expenses on minor or miscellaneous work, in its books of account was proper. Since the assessee had disclosed its entire project receipts of its project in the assessment 2012-13, all the expenses incurred or to be incurred in connection with the project were also taken into account so as to arrive at the correct net profit from this project. When the payee is not known it is not possible to deduct tax at source on estimated expenditure the assessee is not liable to deduct tax at source hence no disallowance can be made. (AY. 2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 145 : Method of accounting-Project completion-Profit and loss account and Balance sheet is prepared on completion of project, provision for expenses in respect of ancillary work yet to be completed has to be taken in to consideration – When the payee is not known it is not possible to deduct tax at source on estimated expenditure \u2013 Not liable to deduct tax at source \u2013 No disallowance can be made. [S. 40(a)(ia)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-4348","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-188","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=4348"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4348\/revisions"}],"predecessor-version":[{"id":6176,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/4348\/revisions\/6176"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=4348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=4348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=4348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}