Appeal Dismissed: No Legal Questions on Accounting Method; Section 80(IB)(10) Deduction Sent for Review.

The High Court dismissed the appeal, concluding no questions of law arose concerning the method of accounting adopted by the assessee, as upheld by the CIT(A) and ITAT. The issue of deduction applicability under Section 80(IB)(10) was remitted to the CIT(A) for factual determination, further supporting the dismissal.

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Issues involved:
1. Method of accounting adopted by the assessee for the assessment year.
2. Applicability of deduction under Section 80(IB)(10).

Analysis:

Issue 1: Method of accounting
The Revenue raised questions regarding the method of accounting adopted by the assessee for the assessment year. The Assessing Officer had initially rejected the assessee's explanation, but both the Commissioner of Income Tax (Appeals) [CIT(A)] and the Income Tax Appellate Tribunal (ITAT) ruled in favor of the assessee. The High Court observed that the ITAT's decision was based on previous judgments and the rule of consistency with previous years. Consequently, the High Court concluded that no question of law arose in this regard, leading to the dismissal of the appeal.

Issue 2: Applicability of deduction under Section 80(IB)(10)
The second issue raised was the applicability of deduction under Section 80(IB)(10). The ITAT had referred this matter back to the CIT(A) for factual determination. The High Court noted this and concluded that since the issue was remitted for factual determination, there were no questions of law arising from this aspect. As a result, the appeal was dismissed by the High Court.

In summary, the High Court dismissed the appeal as no questions of law were found to arise regarding the method of accounting adopted by the assessee for the assessment year, and the applicability of deduction under Section 80(IB)(10) was remitted for factual determination by the CIT(A).

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