https://www.taxtmi.com/caselaws?id=446852 ITAT Pune ruled in favor of the assessee regarding revenue recognition methods. The AO applied percentage completion method based on assessee's statement during search operations, despite previously following project completion method. The tribunal held that absent any finding of profit distortion, the department cannot force substitution of accounting methods. Citing SC precedent in Bilahari Investment, the tribunal emphasized that only when adopted methods distort profits can departments insist on alternative methods. Since revenue accepted project completion method in previous years and found no distortion, the addition was deemed unjustified and invalid. en-us Thu, 05 Oct 2023 00:00:00 +0530 Tue, 12 Dec 2023 14:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446852 ITAT Pune ruled in favor of the assessee regarding revenue recognition methods. The AO applied percentage completion method based on assessee's statement during search operations, despite previously following project completion method. The tribunal held that absent any finding of profit distortion, the department cannot force substitution of accounting methods. Citing SC precedent in Bilahari Investment, the tribunal emphasized that only when adopted methods distort profits can departments insist on alternative methods. Since revenue accepted project completion method in previous years and found no distortion, the addition was deemed unjustified and invalid. Case-Laws Income Tax Thu, 05 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446852