CIT v. Bilahari Investment (P) Ltd.

M/S Continental Carriers vs. Commissioner of Income Tax

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…Page 10 of 19 from domestic business and, therefore, could not be accepted. Mr Kaushik then referred to the decision of the Supreme Court in CIT v. Bilahari Investment P. Ltd.:(2008) 299 ITR 1 SC in support of his contention that the AO could not reject the method adopted by the Assessee unless he recorded a finding that the same has resulted in distortion of profits. He submitted that since no such findings had been recorded, the ITAT's decision was erroneous. Mr Kaushik also relied upon the decision of the Supreme Court in CIT v…

M/S Continental Carrier vs. Commissioner of Income Tax

Bench: HON'BLE DR. JUSTICE S.MURALIDHAR,HON'BLE MR. JUSTICE VIBHU BAKHRU

…Page 10 of 19 from domestic business and, therefore, could not be accepted. Mr Kaushik then referred to the decision of the Supreme Court in CIT v. Bilahari Investment P. Ltd.:(2008) 299 ITR 1 SC in support of his contention that the AO could not reject the method adopted by the Assessee unless he recorded a finding that the same has resulted in distortion of profits. He submitted that since no such findings had been recorded, the ITAT's decision was erroneous. Mr Kaushik also relied upon the decision of the Supreme Court in CIT v…

M/S Continental Carrier vs. Commissioner of Income Tax

…Page 10 of 19 from domestic business and, therefore, could not be accepted. Mr Kaushik then referred to the decision of the Supreme Court in CIT v. Bilahari Investment P. Ltd.:(2008) 299 ITR 1 SC in support of his contention that the AO could not reject the method adopted by the Assessee unless he recorded a finding that the same has resulted in distortion of profits. He submitted that since no such findings had been recorded, the ITAT's decision was erroneous. Mr Kaushik also relied upon the decision of the Supreme Court in CIT v…

Ranbaxy Laboratories Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, we direct the AO to reduce the book profit u/s 115JB of the Act by the amount of reversal of the provision of Rs

Bench: Sh. I. C.Sudhir Judicialmember & Sh. Prashant Maharishia.Y.: - 2008-09 Ranbaxy Laboratories Ltd. Vs Acit 12Th Floor, Devika Tower, Range -15 6, Nehru Place New Delhi New Delhi Pan No. Aaacr0127N (Appellant) (Respondent)

…s work and that "the endeavor can only be to be approximate and there cannot in the very nature of things be great precision and exactness in the matter" (at page 552). In the recent judgment of the Supreme Court in CIT v. Bilahari Investment (P.) Ltd. [2008] 299 ITR 1/168 Taxman 95, the facts were these. The assessee was subscribing to chits and was maintaining the accounts on mercantile basis. The discount on the chits, which was actually the profit arising to the assessee, was declared at the end of the chit period, which at times exceed a period of 12 months. This method adopted by the assessee was being acce…

ACIT, New Delhi vs. M/S Dlf Ltd., New Delhi

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…r, revenue has not been deprived of any tax and the rate of the tax in both the years is same. For this reason also, the addition deserves to be deleted. h) He further relied on the decision of Hon’ble Supreme Court in CIT vs. Billahari Investment Pvt. Ltd. – 299 ITR 1 (SC) to submit that the assesse is entitled to change its method of accounting and such change is revenue neutral. He further Page 52 of 144 submitted that no fault can be found with the assesse in changing the method of accounting on sale of plot in subsequent years. He submitted that in subsequent years, it is not held that method of accounting…

Dlf Ltd., New Delhi vs. Addl. CIT, New Delhi

Bench: Shri A.T. Varkey & Shri Prashant Maharishi

…r, revenue has not been deprived of any tax and the rate of the tax in both the years is same. For this reason also, the addition deserves to be deleted. h) He further relied on the decision of Hon’ble Supreme Court in CIT vs. Billahari Investment Pvt. Ltd. – 299 ITR 1 (SC) to submit that the assesse is entitled to change its method of accounting and such change is revenue neutral. He further Page 52 of 144 submitted that no fault can be found with the assesse in changing the method of accounting on sale of plot in subsequent years. He submitted that in subsequent years, it is not held that method of accounting…

DCIT, New Delhi vs. M/S. Sabh Infrastructure Ltd., New Delhi

In the result appeal of the revenue is dismissed

Bench: Sh. G.D. Agrawal V.P. & Sh. C.M. Garg, J.M Asstt. Year: 2010-11 Dcit Vs Subh Infrastructure Ltd. C-27, 2Nd Floor, Circle-7(1), Room No. 238A, 2Nd Floor, C.R. Building. I.P. Pamposh Enclave Estate, New Delhi New Delhi -110048 Appellant Respondent

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’ NEW DELHI Before Sh. G.D. Agrawal V.P. and Sh. C.M. Garg, J.M Asstt. Year: 2010-11 DCIT VS Subh Infrastructure Ltd. C-27, 2nd Floor, Circle-7(1), Room No. 238A, 2nd Floor, C.R. Building. I.P. Pamposh Enclave Estate, New Delhi New Delhi -110048 APPELLANT RESPONDENT PAN No. AABCS5720R Appellant by: Smt. Rashmita Jha Sr. DR. Respondent by: Sh. Raman Chawla, CA Date of final hearing : 15.02.2016 Date of pronouncement : 24.02.2016 ORDER Per C.M. Garg, JM 1. This appeal by the Revenue has been filed against the order of the Commissioner of the Income Tax (Appeals)…

Paras Buildtech India Private Limited vs. Commissioner of Income Tax

The appeals are allowed in the above terms

…ethod of accounting followed by the Assessee in the present case i.e. project completion method was certainly one of the recognized methods and has been consistently followed by it. 20. In Commissioner of Income Tax v. Bilahari Investment P Ltd. (2008) 299 ITR 1 (SC) it was observed as under: “Recognition/identification of income under the 1961 Act is attainable by several methods of accounting. It may be noted that the same result could be attained by any one of the accounting methods. The completed contract method is one such method. Similarly, the percentage of completion method is another such m…

Paras Buildtech India Private Limited vs. Commissioner of Income Tax

The appeals are allowed in the above terms

…ethod of accounting followed by the Assessee in the present case i.e. project completion method was certainly one of the recognized methods and has been consistently followed by it. 20. In Commissioner of Income Tax v. Bilahari Investment P Ltd. (2008) 299 ITR 1 (SC) it was observed as under: “Recognition/identification of income under the 1961 Act is attainable by several methods of accounting. It may be noted that the same result could be attained by any one of the accounting methods. The completed contract method is one such method. Similarly, the percentage of completion method is another such m…

CIT-I vs. M/S Malibu Estate P Ltd

…t was deemed to be the most appropriate for the activity in question. 7. In CIT vs. Manish Build Well Pvt. Ltd., (2012) 204 Taxman106, a Division Bench of this Court had relied upon the Supreme Court ruling in CIT vs. Balahari Investment Pvt. Ltd. (2008) 299 ITR 1(SC). There, the Supreme Court noticed the difference between the project completion method and the percentage completion method, and commented that both can achieve the same result. 8. This Court in Manish Build Well Pvt. Ltd. (supra) held as follows:- “9 After the above judgments of the Supreme Court it cannot be said that the project com…

New Holland Tractors (India) Private Limited

…ecognises the matching concept, i.e., matching of income with expenditure to arrive at net income. Thereafter, reference was made to CIT versus Woodward Governor of India (P) Limited, (2009) 312 ITR 254, CIT versus Bilahari Investment (P) Limited, (2008) 299 ITR 1 and JK Industries versus Union of India, (2008) 297 ITR 176 on the matching concept. 10. When we apply the aforesaid legal principles to the factual matrix of the present case, it has to be held that the decision of the Tribunal affirming the orders of the tax authorities is correct and as per law. The parent company of appellant-assessee…

Commissioner of Income Tax-I vs. Airline Allied Services Ltd

The appeal is dismissed

…t should give true and fair view of the profit and loss account. Reference has been made to judgments of the Supreme Court in CIT versus Woodward Governor India Private Limited, (2009) 312 ITR 254 (SC), CIT versus Bilahari Investments (P) Limited, (2008) 299 ITR 1 (SC) and J.K. Industries Limited & Another versus Union of India & Others, (2007) 312 CTR (SC) 301. 5. The findings recorded by the two appellate authorities is that the standard followed by the respondent was as per accounting standard AS-12 prescribed by the Institute of Chartered Accountants. The said method of accounting cannot be…

Commissioner of Income Tax Delhi IV vs. Ehpt India P.Ltd

…work and that “the endeavor can only be to be approximate and there cannot in the very nature of things be great precision and exactness in the matter” (at page 552). In the recent judgment of the Supreme Court in CIT v Bilahari Investment P. Ltd. (2008) 299 ITR 1, the facts were these. The assessee was subscribing to chits and was maintaining the accounts on mercantile basis. The discount on the chits, which was actually the profit arising to the assessee, was declared at the end of the chit period, which at times exceed a period of 12 months. This method adopted by the assessee was being accepted by…