https://www.taxtmi.com/caselaws?id=754520 The ITAT Ahmedabad set aside the PCIT's revision order u/s 263 regarding revenue recognition methods and closing stock valuation. The tribunal held that while the AO may have erred by not properly inquiring into the assessee's accounting methods, no prejudice was caused to revenue since the assessee offered income over the project period and paid due taxes. The different timing of income recognition under percentage completion method versus assessee's method was deemed tax neutral, as was the closing stock valuation. Since both conditions for invoking section 263 - erroneous order and prejudice to revenue - were not satisfied, the original assessment order was restored. en-us Wed, 31 Jan 2024 00:00:00 +0530 Wed, 26 Jun 2024 08:29:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754520 The ITAT Ahmedabad set aside the PCIT's revision order u/s 263 regarding revenue recognition methods and closing stock valuation. The tribunal held that while the AO may have erred by not properly inquiring into the assessee's accounting methods, no prejudice was caused to revenue since the assessee offered income over the project period and paid due taxes. The different timing of income recognition under percentage completion method versus assessee's method was deemed tax neutral, as was the closing stock valuation. Since both conditions for invoking section 263 - erroneous order and prejudice to revenue - were not satisfied, the original assessment order was restored. Case-Laws Income Tax Wed, 31 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754520