2010 (2) TMI 71

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....0A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Chennai 'C' Bench dated 11.7.2008 made in ITA No.2411/Mds/2007 for the assessment year 2003-2004. For Appellant: Mr.K.Subramaniam JUDGMENT (Judgment of the Court was delivered by D.MURUGESAN, J.) This appeal is at the instance of the revenue. The respondent-company is engaged in the contract business of civi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ribunal was right in holding that the Assessing Officer was not justified in computing the profits from the assessee's business of construction contracts including the profits accrued on the incomplete projects?" 2. We have heard Mr.K.Subramaniam, learned standing counsel for the revenue. 3. Both the Tribunal as well as the Commissioner of Income Tax (Appeals) have concurrently held that the rev....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is free to follow different method of accounting for income from different sources and that the taxing authorities cannot compel the assessee to adopt the mercantile system of accounting, as has been held by the Supreme Court in CIT v. McMillan & Co., (1958) 33 ITR 182. If the method adopted by the assessee is consistent and regular, the revenue should not have insisted the assessee to adopt a par....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... that from the inception the assessee had been following the completed contract method of accounting and the returns were filed only adopting the said method of accounting till the assessment year in question and there was no defect or inconsistency in the said accounting method adopted by the assessee. As pointed out by the revenue, the assessee has also shown the incomplete project in the form o....