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2010 (10) TMI 707 - ITAT, MUMBAIUndervaluation of closing stock - business of construction and development of properties, flats, shops etc - enhancement of rates of sales - Since the method followed by the assessee is an approved method and had been followed consistently, the learned CIT(A) accepted the plea of the assessee that the value of work-in-progress has to be worked out as per the method consistently followed - It is not in dispute that the assessee has followed percentage completion method consistently since inception and has been declaring income/loss from year to year and the same was accepted in earlier years - Despite the AO's stand for the asst. yrs. 1998-99 and 1999-2000, with regard to correctness of the method of accounting followed by the assessee, in the year 2000-01 when the assessee declared profit of more than Rs. 5 crores the AO appears to have accepted the same method to accept the income declared therein which in itself is an indication that the method of accounting followed by the assessee is an approved method of accounting - in the instant case, there is no such finding either by the AO or by the learned CIT(A); AO has not rejected the book results by pointing out any defect in the books maintained by the assessee - Decided in favor of assessee.
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