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Tax Tribunal Corrects Accounting Method Error, Upholds Project Completion Method, Deletes Additions, Allows Appeals. The ITAT Jaipur addressed the assessee's applications concerning a mistake in the rejection of books of account and the method of accounting. The ITAT ...
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The ITAT Jaipur addressed the assessee's applications concerning a mistake in the rejection of books of account and the method of accounting. The ITAT recognized the error in its previous order, which incorrectly referred to the "percentage completion method" instead of the "project completion method." Upon review, the ITAT found merit in the assessee's arguments and rectified the order under section 254(2) to uphold the books of account and the project completion method. Consequently, the additions were deleted, and the assessee's appeals were allowed. Both Miscellaneous Applications were granted, with the corrected order pronounced on 13/02/2015.
Issues: Correction of mistake apparent from record in the rejection of books of account and method of accounting.
In the judgment by the Appellate Tribunal ITAT Jaipur, the assessee filed applications pointing out a mistake apparent from the record regarding the rejection of books of account and the method of accounting. The counsel for the assessee argued that the ITAT had followed its earlier order in the assessee's group case, upholding the rejection of books of account and the project completion method. The ITAT, in para 2.3 of the order, stated that the facts and circumstances of the assessee's case and its group cases were similar, leading to the rejection of books of account and the accounting method being upheld. The assessee requested the correction of the term "rejection" to be omitted and to replace "percentage completion method" with "project completion method."
Upon hearing the arguments, the ITAT found merit in the assessee's contentions. The ITAT had followed a consolidated order in associated concerns, thereby upholding the books of account and the project completion method used by the assessee. The mistake pointed out by the assessee was considered apparent from the record, leading to the rectification of para 2.3 of the order under section 254(2) to reflect the correction. The ITAT upheld the books of account and the project completion method followed by the assessee in line with the consolidated ITAT order, resulting in the deletion of additions and allowing the appeals of the assessee. The rest of the order remained unchanged.
As a result, both Miscellaneous Applications filed by the assessee were allowed, and the order was pronounced in the open court on 13/02/2015.
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