https://www.taxtmi.com/caselaws?id=396520 A consistent and duly supported accounting method was accepted for project-related liabilities and contract revenue recognition. Provision for costs incurred on completed contracts was allowed as a business deduction because it reflected identified liabilities, was based on project-wise technical estimates, and conformed to accounting standards. Provision for expected cost overruns on incomplete contracts was also allowed as a reasonably estimated probable loss. Additions linked only to higher progress billings were vacated because the percentage completion method had been consistently applied and accepted in earlier years. Software maintenance expenses were held revenue in nature, as they represented recurring upkeep and did not create an enduring capital asset. en-us Mon, 08 Jun 2020 00:00:00 +0530 Wed, 08 Jul 2020 19:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396520 A consistent and duly supported accounting method was accepted for project-related liabilities and contract revenue recognition. Provision for costs incurred on completed contracts was allowed as a business deduction because it reflected identified liabilities, was based on project-wise technical estimates, and conformed to accounting standards. Provision for expected cost overruns on incomplete contracts was also allowed as a reasonably estimated probable loss. Additions linked only to higher progress billings were vacated because the percentage completion method had been consistently applied and accepted in earlier years. Software maintenance expenses were held revenue in nature, as they represented recurring upkeep and did not create an enduring capital asset. Case-Laws Income Tax Mon, 08 Jun 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396520