Case Note & Summary
The appeal was filed by the Revenue under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal dated 13.01.2012 for Assessment Year 2004-05. However, the judgment text indicates the subject matter pertains to Assessment Year 1997-98. The appeal was admitted on 17.09.2012 on the substantial question of law whether the tribunal was correct in holding that the assessee could adopt completed contract method of accounts without appreciating the amendment to Section 145 of the Act w.e.f. 01.04.1997. The court, after hearing the parties, dismissed the appeal, upholding the tribunal's decision. The judgment does not provide detailed facts, arguments, or analysis beyond the question of law and the dismissal order.
Headnote
A) Income Tax - Method of Accounting - Completed Contract Method - Section 145 of Income Tax Act, 1961 - The issue was whether the assessee could adopt completed contract method for Assessment Year 1997-98 despite the amendment to Section 145 w.e.f. 01.04.1997. The court held that the tribunal's decision was correct and dismissed the appeal. (Paras 1-3)
Issue of Consideration
Whether the tribunal was correct in holding that the assessee could adopt completed contract method of accounts without appreciating the amendment to Section 145 of the Act w.e.f. 01.04.1997
Final Decision
The appeal is dismissed. The substantial question of law is answered in favor of the assessee and against the Revenue.
Law Points
- Section 145 of Income Tax Act
- 1961
- completed contract method
- mercantile system of accounting
- amendment w.e.f. 01.04.1997
Case Details
2020 LawText (KAR) (07) 6
Alok Aradhe, Hemant Chandangoudar
K.V. Aravind (for appellants), Pukale Manoj Devinder (for respondent)
The Commissioner of Income-tax and The Income-tax Officer
M/s. Banjara Developers and Constructions Pvt., Ltd.
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Nature of Litigation
Appeal under Section 260A of Income Tax Act, 1961 against order of Income Tax Appellate Tribunal
Remedy Sought
Revenue sought to set aside the tribunal's order and confirm the order of the Income Tax Officer
Filing Reason
Revenue challenged the tribunal's decision allowing the assessee to adopt completed contract method of accounts
Previous Decisions
Tribunal's order dated 13.01.2012 in ITA No.472/Bang/2003 for Assessment Year 2004-05 (though judgment mentions 1997-98)
Issues
Whether the tribunal was correct in holding that the assessee could adopt completed contract method of accounts without appreciating the amendment to Section 145 of the Act w.e.f. 01.04.1997
Ratio Decidendi
The tribunal's decision allowing the assessee to adopt completed contract method of accounts was correct and the amendment to Section 145 w.e.f. 01.04.1997 does not preclude such method for Assessment Year 1997-98.
Judgment Excerpts
This appeal has under Section 260A of the Income Tax Act, 1961 ... has been preferred by the assessee.
The subject matter of the appeal pertains to Assessment year 1997-98.
The appeal was admitted by a bench of this Court by order dated 17.09.2012 on following substantial question of law: (i) Whether the tribunal was correct in holding that the assessee could adopt completed contract method of accounts without appreciating the amendment to Section 145 of the Act w.e.f. 01.04.1997
Procedural History
The appeal was filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal dated 13.01.2012 in ITA No.472/Bang/2003 for Assessment Year 2004-05. The appeal was admitted on 17.09.2012 on the substantial question of law. The High Court dismissed the appeal on 08.07.2020.
Acts & Sections
- Income Tax Act, 1961: 260A, 145
