2014 (5) TMI 547

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....so disallowed interest expenses amounting to Rs. 52.61 lakhs. During the proceedings before us, assessee filed additional grounds which read as under: "1.1. On the facts and in the circumstances of the case and in law, the CIT (A) erred in confirming the action of the AO in making addition of Rs. 25,00,000/- as unexplained credit u/s 68 of the Act. 1.2. The CIT (A) failed to understand the facts that the appellant has inadvertently passed a wrong entry in his books of account by Rs. 25,00,000/- which needs rectification in books of account of the appellant and it does not warrant any addition u/s 68 of the Act." 3. At the outset, narrating the brief facts of the present case, Shri Kirit N Mehta, Ld Counsel for the assessee mentione....

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....ssee could not succeed. Accordingly, the assessee is in appeal before the Tribunal with the grounds mentioned above. 5. During the proceedings before us, Ld Counsel brought our attention to the reasons given by the AO for invoking the provisions of section 145(3) of the Act and mentioned that they are not sustainable considering the various case laws of the Coordinate Bench of ITAT, Bombay, when the profits are properly determined, the Assessing Officer cannot thrust on the assessee a method of accounting i.e., in this case "percentage completion method", when assessee is following consistently "project completion method". Bringing our attention to copies of the assessment orders for the earlier assessment years 2002-2003 to 2005-2006 (p....