Rupayan Udyog v. ITO [ITA Nos. 1943 & 1944 (Kol) of 2014, dt. 13-4-2016] : 2016 TaxPub(DT) 2169 (Kol-Trib)

Completed contract method v. Percentage of completion method

Facts:

Assessee in the business of construction and development was following percentage of completion method as per AS-7 revised of ICAI. The assessing officer and Commissioner (Appeals) made additions ignoring the same based on collection of advances. Aggrieved assessee went in appeal:

Held by the ITAT that percentage of completion method as followed by the assessee was correct and consistent hence additions were not sustainable.