2007 (8) TMI 339

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..... e authorities below have rightly rejected the claim of the assessee on the estimated loss. The Tribunal had only remanded the claim to the assessing officer with a direction to determine the stage to which project was completed during the relevant year and allow the expenditure accordingly, which is permissible as per clause 21 of the Accounting Standard 7 - 1167 of 2007 - - - Dated:- 29-8-2007 - .....

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..... Rs.1,05,91,411/- towards provision for expenditure. The assessing officer disallowed the provision for expenditure on the ground that the amount claimed by the assessee was based on estimates by the Management in proportion to the stage of completion. The accounting standard AS-7 does not permit any negative work in progress to be allowed, but the claim made by the assessee was as negative wor .....

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..... ore this Court by formulating the question of law as follows: "Whether on the facts and circumstances of the case, the Tribunal was right in holding that provision for expected loss can be allowed as a deduction prior to completion of the contract, while the assessee was following a completed contract method of recognition of income? 3. Learned counsel appearing for the revenue submitted tha .....

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