1993 (9) TMI 346

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....JUDGMENT Dr. B.P. Saraf, J.-By this reference under s. 256(1) of the IT Act, 1961, the Tribunal has referred the following questions of law to this Court for opinion : (1) Whether, on the facts and in the circumstances of the case, the income, profits and gain of the assessee from the contract business should be assessed on accrual basis in a year when a particular contract is complete....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he method of accounting followed by the assessee for the asst. yrs. 1967-68 to 1971-72 determining the income from business of contract was rejected by the ITO. The Tribunal, on consideration of the facts and circumstances of the case, came to a conclusion that the ITO was not justified in rejecting the method of accounting of the assessee and resorting to proviso to s. 145(1) of the Act. 3. Th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....d of accounting followed by the assessee was correct and resort to s. 145(1) was not called for. We do not find any infirmity in the said finding. We, therefore, refuse to interfere with the same. 5. In that view of the matter, we answer question No. 2 in the affirmative and in favour of the assessee. 6. Having regard to answer to question No. 2, question No. 1 need not be answered. 7. So....