https://www.taxtmi.com/caselaws?id=59419 The Tribunal ruled that for assessees using the project completion method, interest related to a project is deductible only upon project completion and income realization. It upheld the department's stance that interest costs should be added to work-in-progress, emphasizing consistency in accounting practices and adherence to AS-7. The Tribunal found the department's rejection of the yearly deduction method justified, as the assessees consistently added interest to work-in-progress in their accounts. The Bombay HC decision in Lokhandwala was deemed inapplicable. Work-in-progress was classified as stock-in-trade, reinforcing the department's position on accounting method consistency. en-us Thu, 22 Sep 2005 00:00:00 +0530 Fri, 12 Apr 2024 11:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=59419 The Tribunal ruled that for assessees using the project completion method, interest related to a project is deductible only upon project completion and income realization. It upheld the department's stance that interest costs should be added to work-in-progress, emphasizing consistency in accounting practices and adherence to AS-7. The Tribunal found the department's rejection of the yearly deduction method justified, as the assessees consistently added interest to work-in-progress in their accounts. The Bombay HC decision in Lokhandwala was deemed inapplicable. Work-in-progress was classified as stock-in-trade, reinforcing the department's position on accounting method consistency. Case-Laws Income Tax Thu, 22 Sep 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=59419