https://www.taxtmi.com/caselaws?id=122764 Under the completed contract method, project-related expenditure is carried in work-in-progress and profit is recognised only on completion of the contract. Disallowance for non-payment of tax deducted at source under section 40(a)(ia) should therefore be reflected by adjusting the work-in-progress in the year of completion, not by a mechanical addition to total income in the year of incurrence for incomplete projects. The Assessing Officer may examine and correct the work-in-progress account for this purpose. For completed projects, the disallowance can survive, subject to verification of the computation. en-us Tue, 27 Oct 2009 00:00:00 +0530 Fri, 06 Oct 2023 10:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122764 Under the completed contract method, project-related expenditure is carried in work-in-progress and profit is recognised only on completion of the contract. Disallowance for non-payment of tax deducted at source under section 40(a)(ia) should therefore be reflected by adjusting the work-in-progress in the year of completion, not by a mechanical addition to total income in the year of incurrence for incomplete projects. The Assessing Officer may examine and correct the work-in-progress account for this purpose. For completed projects, the disallowance can survive, subject to verification of the computation. Case-Laws Income Tax Tue, 27 Oct 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122764