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1 - 3 of 3 (0.38 seconds)The Income Tax Act, 1961
Cit vs Malibu Estate (P) Ltd. on 2 August, 2006
6.1 In this regard, the ld. counsel for the assessee submitted that
the assessee is engaged in construction business and the impugned
loss was claimed as expenditure in terms of Accounting Standard-
7, issued by Institute of Chartered Accountant of India (ICAI),
based on Percentage of Completion Method (POCM) and the same
method of accounting followed by the assessee has been accepted
by the tax authorities on a year to year basis. Besides, POCM
method of accounting for tax purposes has been upheld by Hon'ble
Delhi High Court in the case of CIT vs. Malibu Estate Ltd in ITA
No.213/2015 & CM No.4961/2015. During the year, the assessee
has recognized the foreseeable losses and created provision
thereof. The ld. counsel next submitted that in identical fact
situation in the preceding Assessment Year 2014-15, the Co-
ordinate Bench in ITA No.3731/Del/2019 order dated 07.09.2022
has held that the Revisional Commissioner was not justified in
assuming jurisdiction under Section 263 towards such losses and
therefore, the issue is no longer res integra.
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