https://www.taxtmi.com/caselaws?id=770885 The ITAT Chennai dismissed the revenue's appeal regarding a civil contractor's application of ICDS III for revenue recognition. The assessee correctly followed the Percentage of Completion Method (POCM) as mandated by ICDS III, accounting for entire revenue in computing total income. The tribunal held that GST payment based on invoices rather than POCM had no implication on income computation. The assessee's declared income of Rs. 9,79,75,000 on gross POCM of Rs. 42,26,67,000 represented a reasonable 23.18% net margin, while the AO's proposed addition would create an improbable 48.64% margin. The CIT(A)'s deletion of additions was upheld. en-us Fri, 25 Apr 2025 00:00:00 +0530 Sat, 17 May 2025 08:39:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770885 The ITAT Chennai dismissed the revenue's appeal regarding a civil contractor's application of ICDS III for revenue recognition. The assessee correctly followed the Percentage of Completion Method (POCM) as mandated by ICDS III, accounting for entire revenue in computing total income. The tribunal held that GST payment based on invoices rather than POCM had no implication on income computation. The assessee's declared income of Rs. 9,79,75,000 on gross POCM of Rs. 42,26,67,000 represented a reasonable 23.18% net margin, while the AO's proposed addition would create an improbable 48.64% margin. The CIT(A)'s deletion of additions was upheld. Case-Laws Income Tax Fri, 25 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770885