COMMISSIONER OF INCOME TAX, BANGALORE Vs. NADIC ASSOCIATES

JUDGEMENT

(1.) The substantial questions of law raised in this appeal are as under:

(2.) According to the learned counsel for the appellant-revenue, though the Assessing Officer made a detailed order taking into consideration the claim of the assesses to allow him to continues with the 'Completed Contract Method of Accounting' and the amendment to section 145 of the Act held that, the assessee has to follow one of the method contemplated under section 145 of the Act and not any other method of his choice. Neither the first appellate Court nor the Tribunal considered the consequence of amendment to section 145 of the Act with effect from 1-4-1997. The cases referred to by the Tribunal H.M. Constructions v. Joint CIT, 2003 84 ITD 429 and the decision of this Court in the case of Khoday Distilleries Ltd. [IT Reference case No. 19 of 1993] are prior to the amendment to section 145 of the Act. Therefore, the Tribunal was not justified in concluding that the assessee was entitled was entitled to follow the method of 'Completed Contract Method of Accounting' which he followed in the previous years despite the amendment to section 145 of the Act. The Tribunal, apparently, did not take note of the fact that the judgments relied upon by it were prior to the amendment and not subsequent to the amendment. Therefore, the appeal deserve to be allowed and accordingly. The matter is remanded to the Tribunal for consideration in the light of the amendment to section 145 of the Act with effect from 1-4-1997.