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The Tax PublishersITA No. 1619/Pun/2017
2020 TaxPub(DT) 5598 (Pune-Trib)INCOME TAX ACT, 1961
Section 80-IB(10)
Where it was seen that assessee had switched over from the Percentage Completion Method to the Project Completion Method in a bona fide manner and continued with the changed method in the years to come, no fault can be found with order of CIT(A) deleting the addition made by AO sticking to the Percentage completion method, which was abandoned by the assessee.
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Deduction under section 80-IB - CIT(A) deleted addition made by AO - Assessee changed accounting method -
Assessee was initially following the Percentage completion method for showing income on the basis of percentage of work done. Later, in revised return he withdrew the claim of deduction under section 80-IB(10) and changed the method of accounting from the Percentage completion to the Project completion on the ground of certain unforeseen circumstances. AO did not accept the assessee's stand and proceeded to compute total income, based on the original return filed by the assessee following the Percentage completion method and made addition accordingly. On appeal, CIT(A) deleted addition. Held: It was seen that assessee had switched over from the Percentage completion method to the Project completion method in a bona fide manner and continued with the changed method in the years to come. Thus, no fault can be found with order of CIT(A) deleting the addition made by AO sticking to the Percentage Completion Method, which was abandoned by the assessee.
REFERRED :
FAVOUR : In favour of assessee.
A.Y. : 2006-07
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