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TMI Blog2020 (7) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... w of law laid down by the Supreme Court in BILAHARI INVESTMENTS PVT. LTD. [ 2008 (2) TMI 23 - SUPREME COURT ] the Commissioner of Income Tax (Appeals) as well as the tribunal has rightly held that there was no justification on the part of the assessing officer to change the earlier method adopted by the assessee and to determine the income on estimate basis. Assessee was following completed contract method which was accepted by the department in the past as well and therefore, there is no justification for the assessing officer to change the same. For the aforementioned reasons the submission made on behalf of the revenue cannot be accepted. By reading the order of the tribunal as a whole, it is evident that the tribunal has taken note of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment was completed under Section 143(3) on 10.02.2000 by which the income was determined at ₹ 7,59,730/-. Subsequently, it was noticed that assessee had received ₹ 1,52,42,380/- as advance from customers pending transfer to income accounts. Thereupon a notice under Section 148 was issued. The assessing officer by an order dated 28.03.2002 inter alia held that current profit cannot be decided by the method of book of accounting followed by the assessee and estimated the income of the assessee by applying 8% rate on the advances received by the assessee on a sum of ₹ 1,52,42,380/-. Accordingly, addition was made by the assessing officer. 3. Being aggrieved, the assessee filed an appeal before the Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er dated 13.01.2012 by taking note of decision of the Supreme Court in 'CIT VS. BILAHARI INVESTMENTS PVT. LTD.,', (2008) 299 ITR 1 (SC) held that in the instant case the assessee was following the completed contract method consistently and the aforesaid method was accepted by the department in the past as well and therefore, there was no justification on the part of the assessing officer to change the earlier method adopted by the assessee and to determine the income on the estimate basis. Accordingly, the appeal was dismissed. Being aggrieved, the revenue is in appeal before us. 6. Learned counsel for the revenue while inviting the attention of this court to order dated 23.09.2010 passed in I.T.A No.36/2006, by a bench of this cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not been given retrospective operation. The supreme court in the case of BILAHARI INVESTMENTS PVT. LTD. supra has held as under: Every assessee is entitled to arrange its affairs and follows the method of accounting which the department has earlier accepted. It is only in those cases where the department records a finding that the method adopted by the assessee results in distortion a profits that the department can insist on substitution of the existing method. 8. In the instant case, admittedly the assessee is following mercantile system of accounting and as per notes to the accounts, the assessee is following completed contract method of accounting for contracts. The aforesaid method of assessment has been accepted by the department in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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