2017 (11) TMI 1997

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....61 (for short 'the Act'). 2. Brief facts of the case are that the assessee firm engaged in the business of construction of buildings filed its return of income for the assessment year under consideration declaring 'Nil' income. The return was processed u/s 143(3) of the Act and the return was accepted. Subsequently, the case was selected for scrutiny and notices u/s 143(2) and 142(1) were issued. In response thereof, the authorized representative (AR) of the assessee appeared and filed the details called for. During the year relevant to the assessment year under consideration, the assessee was engaged in constructing a project which had been started in 2008-09. Since, the assessee has been following the project completion method, no tax ....

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.... passed by the Ld. CIT(A) the revenue is in appeal before the Tribunal by raising the following effective ground of appeal: "Whether on the facts and in the circumstances of the case and in law, the Learned CIT (A) was justified in deleting the addition made by the Assessing Officer on account of percentage completion method?." 4. Before us, the Ld. Departmental representative relying on the assessment order submitted that since, the assessee has followed the project completion method, to postpone the tax liability, the AO has rightly rejected the explanation given by the assessee and determined the profit earned during the accounting year under consideration in terms of section 145 of the Act as amended w.e.f. 01.04.1997 and ad....

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....rofit earned on the said project by following project completion method albeit in subsequent years and it is claimed that no prejudice has been caused to the Revenue. But, however to substantiate this conditions evidences are not placed on record by the assessee before us except provisional profit and loss account for financial year 2013-14. After considering the various case laws cited by the assessee based on peculiar facts of the case, we are of the considered view that consistency has to be followed as the Revenue has accepted the 'project completion method' in the past. The entire profit from this project is stated to have been offered for taxation and due taxes are stated to have been paid to the Revenue albeit in assessment year 2014....