2015 (9) TMI 1304

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....for our consideration: (1) Whether, on the facts and the circumstances of the case, the Tribunal was justified in law in holding that the assumption of jurisdiction u/s. 263 of the Act, by the CIT is not valid and that the assessee has not committed any legal error by uniformly and consistently following 'Project Completion Method' when he should have followed 'Percentage Completion Method' as per Accounting Standard 9? (2) Whether, on the facts and the circumstances of the case, the Tribunal was justified in law in not appreciating that the order passed by the assessing officer in this case is prejudicial to the interest of the Revenue as the assessee has not recognized revenue as per Accounting Standard 9....

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....tently following the Project Completion Method over the years. Further in respect of the two projects which arise for consideration in the subject assessment year, the respondent was following the Project Completion Method in respect of both the projects. The Commissioner while seeking to revise the order of the Assessing Officer has not disturbed the adoption of Project Completion Method in respect of Gym View Project and merely sought to replace the Project Completion Method by Percentage Completion Method in respect of Link Corner Project. Further, the impugned order relied upon the settled position of law that the method of accounting cannot be thrust upon the assessee and where the assessee has been consistently following a particular ....

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....od of accounting is of the assessee. The respondent-assessee has chosen/adopted the Project Completion Method of accounting and has been consistently following it over the years. It is not open to the revenue to reject a method because according to the Assessing Officer another method is prefereable. In view of the above settled position, no fault can be found with the impugned order of the Tribunal. Moreover, the most appropriate method of accounting to correctly reflect the true financial statement is a matter of opinion and debate. Issues of debate are not amenable to Revisional jurisdiction under Section 264 of the Act. 9. So far as the alternative submission made by Mr. Malhotra viz. the Link View Project should have also been broug....