TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tax Tribunal Upholds Project Completion Method for Revenue Recognition, Rejects Appeals for 2008-09 and 2009-10.</h1> <h3>Deputy Commissioner of Income Tax, Circle-7 (1), New Delhi Versus M/s. Sabh Infrastructure Ltd.</h3> The ITAT Delhi dismissed the Revenue's appeals against the CIT(A)'s order for AY 2008-09 and 2009-10, which deleted additions made by the AO for rejecting ... - Issues involved: Appeal against CIT(A)'s order deleting additions made by AO for revenue recognition method.Summary:The ITAT Delhi heard appeals by the Revenue against CIT(A)'s order for AY 2008-09 and 2009-10. The Revenue challenged the deletion of additions made by the Assessing Officer for rejecting the accounting method of the assessee company and applying the percentage completion method. The CIT(A) allowed relief based on previous orders upheld by the ITAT for AY 2006-07 & 2007-08. The ITAT found no infirmity in the CIT(A)'s decision as the method of accounting followed by the assessee, i.e., recognizing revenue on project completion method, was consistent and had been upheld in previous years. The ITAT upheld the CIT(A)'s order, dismissing the Revenue's appeals.The CIT(A) based the decision on the ITAT's previous rulings in the assessee's favor for AY 2006-07 and 2007-08, where the issue of revenue recognition method was similar. The ITAT had previously upheld the project completion method followed by the assessee, which was consistent with the current case. The CIT(A) concluded that the issue was settled in favor of the appellant based on judicial discipline and upheld the assessee's method of accounting.The ITAT, after considering arguments from both sides, found no flaws in the CIT(A)'s decision. The dispute centered around the method of accounting for revenue recognition, with the assessee following project completion method while the AO preferred percentage completion method. Given that the ITAT had previously supported the project completion method in the assessee's case, the ITAT upheld the CIT(A)'s order, dismissing the Revenue's appeals. The decision was pronounced on July 31, 2013.
TaxTMI 
TaxTMI 
