HIGH COURT OF JUDICATURE AT HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE 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 SENGUPTA AND THE 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 the judgment and order dated 20.01.2014 of the learned Tribunal in relation to the assessment year 2008-09 on the following suggested question of law:
In the facts and circumstances of the case, whether the Hon’ble Tribunal (ITAT) is correct in law in allowing the respondent- assessee’s claim of calculation of estimated costs on the basis of percentage of work completion based on supplementary agreement, when the said supplementary agreement is an act of afterthought to increase the project cost and when no work is executed based on the said supplementary agreement?
While examining the aforesaid question and hearing Sri B.
Narasimha Sarma, learned counsel for the appellant, it appears to us that the learned Tribunal has correctly pointed out the question that whether the Assessing Officer is right in rejecting the accounting method regularly employed by the assessee and substituting the same with the accounting method as per AS-7 and computing the profit based on it.
On fact, the learned Tribunal found that the accounting method applied by the assessee is not only regularly followed but also accepted by the Assessing Officer subsequently. In these circumstances, we do not find any wrong in the judgment and order of the learned Tribunal to entertain this appeal.
The appeal is accordingly dismissed. No order as to costs.
K.J. SENGUPTA, CJ SANJAY KUMAR, J
Date: 06.08.2014 ES