2018 (2) TMI 1714

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..... ppearing for the Revenue states that consequent to the restoration, the Assessing Officer has already passed an order dated 2nd March, 2015 in favour of the Revenue. No substantial question of law. Allowability of prior years expenditure - Method of accounting - Held that:- The respondent assessee is following the completed contract method. Therefore, the respondent assessee claims that his con .....

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..... nised until the contract is complete. Under the said method, costs are accumulated during the course of the contract. The profit and loss is established in the last accounting period and transferred to the profit and loss account. The said method determines results only when the contract is completed. No substantial question of law. - Income Tax Appeal No. 808 of 2015 - - - Dated:- 12-2-2018 - .....

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..... t venture, following the completed method of accounting wherein holding that the retention money received by the company cannot be subjected to tax ? (iii) Whether in law and on the facts of the instant case, the Tribunal was justified of the joint venture, following the mercantile system of accounting that prior years expenditure be allowed as deduction in the subject Assessment Year ? .....

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..... urred over the entire period of the contract. (b) It is not disputed by the Revenue before us that the respondent assessee has followed the completed contract method of accounting. In view of the aforesaid fact the Tribunal has allowed the expenditure which was incurred and revenues earned in the earlier years during the progress of the contract as they are taken into account in the subject ass .....

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..... the said method, costs are accumulated during the course of the contract. The profit and loss is established in the last accounting period and transferred to the profit and loss account. The said method determines results only when the contract is completed. This method leads to objective assessment of the results of the contract. (d) In the above view, the question no.(iii) does not give ri .....

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