Court : Income Tax Appellate Tribunal ITAT Pune
1. The assessee is a public limited company and is engaged in the business of designing, engineering, fabrication, procurement and assembly, erection, installation and commissioning of Ground Boilers with the help of sophisticated technology for Petrochemical, Fertiliser, Sugar and other process industries.2. The first grievance of the assessee relates to the addition of Rs. 96,37,000 on account of provisioning made on account of revenue recognition on percentage of completion method. The facts and arguments of both sides are identical to those discussed by us in I.T.A. No.157/Pune/1995 for the earlier assessment year i.e. 1990-91. As such the decision given by us in the aforesaid order will apply mutatis mutandis to the facts of the present case. For the reasons discussed therein, we hold that there is no justification for the impugned addition of Rs. 96,37,000 on account of provision made on account of revenue recognition on percentage of completion method. The same is accordingly d...
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Pune
The assessee is a public limited company and is engaged in the business of designing, engineering, fabrication, procurement and assembly, erection, installation and commissioning on ground boilers with the help of sophisticated technology for petrochemical, fertilisers, sugar and other process industries. The first grievance of the assessee relates to addition of Rs. 60,30,000 on account of provisioning made on account of revenue recognition on percentage of completion method. The year under consideration is the first year of assessees business and for arriving at the portion of the profit of the long-term contracts, whose execution is spread over more than one accounting period, the company maintained accounts on the percentage of completion method, now formally recognised as Accounting Standard 7 (AS-7) of the Institute of Chartered Accountants of India. In other words, in respect of long-term contracts the profit was shown by adopting the following method : Following break-up of th...
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