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TMI Blog2016 (5) TMI 1413X X X X Extracts X X X X X X X X Extracts X X X X ..... at search and seizure action u/s. 132(1) of the I.T. Act was initiated in the case of M/s. Gajra Group on 19.02.2009, simultaneously the office premises of the assessee at Plot No. 28A, Gahlot Complex, Sector-18, Nerul, Navi Mumbai was also surveyed u/s. 133A of the Act. Consequent upon notice u/s. 153C was served upon the assessee. In response to the notice, assessee filed return of income along with profit & loss a/c and balance sheet on 28.04.2010 declaring total income of Rs. 10,92,965/-. During the course of assessment proceeding, the assessee was show caused as to why income of Rs. 53,00,000/- should not be added to the total income of assessee on the basis of percentage completion method. Which was admitted during the course of searc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 5. We have considered the rival contention of the parties and perused the material available on record. Departmental Representative (DR) for revenue argued that during the search action, the assessee voluntarily made the statement and offered the income and the addition was made on the basis of declaration offered by the assessee during the search proceeding. DR further argued that restored the order of AO and set-aside the order of CIT(A). Authorised Representative (AR) of the assessee argued that the assessee-firm were following project completion method of accounting which is evident from the return of income filed on record for AY- 2008-09. The assessee never adopted the percentage method of accounting. During the search proceeding, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of percentage completion method which has been retracted later on - Held that:- There is no finding that the assessee has been following percentage completion method regularly since beginning or in any other project. There is no such evidence or documents which have been found during the course of search indicating that the assessee had been following percentage completion method regularly. If the assessee has been following one of the recognized methods as prescribed by AS-9, then it cannot be held that the Revenue can impose a different method upon the assessee unless there is a finding of fact that such a method is not reflecting the true profits of the assessee. Now it has also been brought on record by the Id. Counsel that in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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