1992 (1) TMI 60

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..... aintaining its accounts on complete work basis and by the method of dividing the net profit year wise in proportion to yearly gross receipts ? " Both the references are governed by this judgment. The background facts as appear from the statement of case drawn up by the Tribunal are as follows : M/s. Guttoffnungasliutto Sterkrado (hereinafter referred to as the " assessee ") is a non-resident company incorporated in West Germany. It entered into a contract with Hindusthan Steel Limited for delivery, supervision, assembling and putting into operation its Blast Furnace No. IV at Rourkela Steel Plant. The work of erection was taken up and completed during the period from November 7, 1963, to March 31, 1968. Since the performance of the co .....

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..... l before the Tribunal. The Tribunal restored the orders of the Income-tax Officer and set aside the orders passed by the Commissioner. In the meantime, the assessments for the years 1967-68 and 1968-69, with which we are presently concerned had been taken up. The assessments made were assailed before the Appellate Assistant Commissioner of Income-tax. The said authority set aside the assessments with a direction to make them afresh. The Income-tax Officer, while making the fresh assessments, observed that the method of accounting adopted by the assessee was not correct. He was of the view that a net profit rate of 10 per cent. was to be adopted on the receipts and, accordingly, the assessee's income was computed. Out of the profits, two-thi .....

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..... missioner of Income-tax passed tinder section 263 of the Act were set aside, and the orders of the Income-tax Officer were restored. It is not in dispute that the Revenue has not assailed the correctness of the conclusions of the Tribunal. The fact situation being identical, the Tribunal followed its earlier judgment and observed that the " complete contract " basis was the correct mode for determination of the assessee's income and its income can be correctly determined from the method of accounting adopted by it. It, therefore, upheld the direction of the Commissioner of Income-tax (Appeals) given to the Assessing Officer for redoing the assessments on the " complete contract " basis. The question that has been referred to this court is w .....

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