https://www.taxtmi.com/caselaws?id=782029 ITAT Mumbai (AT) held that the AO was not justified in changing the method of accounting and estimating profits without first rejecting the audited books. It noted that CIT(A), while applying the percentage completion method using audited data up to AY 2019-20, failed to consider certain crucial factual aspects subsequently clarified by the assessee. After factoring in the actual financial data up to AY 2022-23, the correct position showed a loss for both assessment years under appeal. Consequently, the additions made by the AO and partially sustained by CIT(A) were deleted, and the assessee's appeals were allowed. en-us Fri, 31 Oct 2025 00:00:00 +0530 Mon, 24 Nov 2025 08:57:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782029 ITAT Mumbai (AT) held that the AO was not justified in changing the method of accounting and estimating profits without first rejecting the audited books. It noted that CIT(A), while applying the percentage completion method using audited data up to AY 2019-20, failed to consider certain crucial factual aspects subsequently clarified by the assessee. After factoring in the actual financial data up to AY 2022-23, the correct position showed a loss for both assessment years under appeal. Consequently, the additions made by the AO and partially sustained by CIT(A) were deleted, and the assessee's appeals were allowed. Case-Laws Income Tax Fri, 31 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782029