Deduction u/s 80-IB(10) can’t be denied even if assessee follows “Project completion method” instead of “Percentage completion method” as prescribed by AS-7 (Revised):

AO denied deduction u/s 80-IB(10) only on the ground that assessee engaged in business of construction had adopted “Project completion method” instead of “Percentage completion method” as prescribed under AS-7 (Revised). The Hon’ble High Court observed that there was no allegation to the effect that on account of “Project completion method” adopted by the assessee, its profit for any particular year was distorted. Further, the assessee had followed the same system consistently for a long period of time. It was thus held that assessee must be allowed deduction u/s 80-IB(10).

[SATHDHAR ENTERPRISES - TAX APPEAL NO.1389 & 1390 of 2011 - GHC]