Project Completion Method and section 80IB(10) deduction accepted for the assessee, with the Revenue's challenge rejected.

Eligibility for deduction under section 80IB(10) was decided in favour of the assessee, with the Court following its reasoning in the connected matter and recording no independent contrary finding in the present order. On the accounting question, the Court accepted the Project Completion Method and rejected the Revenue's objection to the Percentage Completion Method applied by the assessing authority, again by adopting the reasoning in the connected appeal decided the same day. The Revenue's challenge therefore failed.

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Issues: (i) whether the assessee was entitled to deduction under section 80IB(10) of the Income-tax Act, 1961; (ii) whether the Project Completion Method adopted by the assessee was required to be accepted instead of the Percentage Completion Method applied by the assessing authority.

Issue (i): whether the assessee was entitled to deduction under section 80IB(10) of the Income-tax Act, 1961.

Analysis: The appeal raised a substantial question on the assessee's eligibility for deduction under section 80IB(10) in relation to the assessment year in question. The Court did not record any independent contrary finding in the present order and disposed of the appeal by following its decision in the connected matter.

Conclusion: The issue was answered in favour of the assessee.

Issue (ii): whether the Project Completion Method adopted by the assessee was required to be accepted instead of the Percentage Completion Method applied by the assessing authority.

Analysis: The additional substantial question concerned the method of accounting for recognition of income from the project. The Court disposed of the appeal by adopting the reasoning rendered in the connected appeal decided the same day.

Conclusion: The Project Completion Method was accepted and the Revenue's objection was rejected.

Final Conclusion: The appeal did not succeed and the Revenue's challenge was rejected.

Ratio Decidendi: Where the Court follows its reasoning in a connected matter, the same conclusion governs the present appeal and the Revenue's challenge fails.

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