accounting regularly employed by the assessee. If, therefore, there is a system of accounting regularly employed and by appropriate adjustments from the accounts maintained taxable ... method of making up the statutory return for assessment to income-tax. Secondly, the section clearly makes such a method of accounting a compulsory basis
accounting and not mercantile system of accounting simplicitor. Under this hybrid system of accounting this assessee while following the mercantile system of accounting in respect ... system of accounting as well as mercantile system of accounting. Such an accounting practice could not be held to be a proper method of accounting
from the cash system of accounting and the mercantile system of accounting, "there are innumerable other systems of accounting which may be called hybrid ... whether the change in the method of valuation of stock, which is a part of the method of accounting, can be accepted or not. This
been stated that where an assessee regularly employs a particular method of accounting its income has to be computed in accordance with such regular method ... enables the ITO not to accept the method of accounting of the assessee, if he were of the opinion that the method employed was such
interest on suspense account was being credited directly to the suspense account and not to the profit and loss account. This method had been regularly ... accounting followed by the assessee, the interest in suspense account cannot be treated as income of the assessee. Even otherwise the assessee changed its method
either the project completion method or the percentage completion method."
Where the assessee was following a particular method of accounting
consistently, which has been ... methods. The completed contract method
is one such method. Similarly, the proceedings of completion method is another
such method.
Under the completed contract method
respectively, relying on project
completion method of accounting followed by assessee company. For this, revenue has raised
common and identically worded grounds, except amount. Following ... erred in putting emphasis on the project completion
method of accounting ignoring the fact that Books of A/cs. Of the assessee company were
rejected
building
project, maintenance of books of accounts as per Accounting Standard-7 (AS-7) is a well
recognized method and accepted in various courts ... upon change the method of
accounting to Accounting Standard 7 was uncalled for. We also find that the method of
accounting followed by the assessee
followed the changed method consistently. Another ground in the view of the ITO to reject the changed method of accounting was that the debtors from ... accounting is substituted by another regular method, the same result will follow. If the changed method of accounting reflects the correct state of affairs
accounting entries. The assessee had taken undue benefit of such carrying cost
which was not permissible as per the legal provisions, though such accounting
methods ... find any infirmity in the accounting
methods adopted by the assessee but the same method of accounting followed in
relation to shares of Off-Shore
