Itta/540/2014 Of Commissioner Of Income Tax-Iii v. M/S Universal Realtors Private Limited

HIGH COURT OF JUDICATURE AT HYDERABADFOR THE STATE OF TELANGANA AND THE STATE OF ANDHRAPRADESH THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 540 of 2014 Date: 06.08.2014 Between: Commissioner of Income Tax-III,Hyderabad. … Appellant And M/s. Universal Realtors Private Limited,Secunderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 540 of 2014 JUDGMENT:(Per the Hon’ble The Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is sought to be preferred and admitted against thejudgment and order dated 20.01.2014 of the learned Tribunal in relation tothe assessment year 2008-09 on the following suggested question oflaw: In the facts and circumstances of the case, whether theHon’ble Tribunal (ITAT) is correct in law in allowing the respondent-assessee’s claim of calculation of estimated costs on the basis ofpercentage of work completion based on supplementary agreement,when the said supplementary agreement is an act of afterthought toincrease the project cost and when no work is executed based on thesaid supplementary agreement? While examining the aforesaid question and hearing Sri B.Narasimha Sarma, learned counsel for the appellant, it appears to usthat the learned Tribunal has correctly pointed out the question thatwhether the Assessing Officer is right in rejecting the accounting methodregularly employed by the assessee and substituting the same with theaccounting method as per AS-7 and computing the profit based on it. On fact, the learned Tribunal found that the accounting methodapplied by the assessee is not only regularly followed but also acceptedby the Assessing Officer subsequently. In these circumstances, we donot find any wrong in the judgment and order of the learned Tribunal toentertain this appeal. The appeal is accordingly dismissed. No order as to costs. Date: 06.08.2014ES ___________________ K.J. SENGUPTA, CJ ___________________SANJAY KUMAR, J