Commissioner Of Income Tax, Chennai vs M/S Bilahari Investment (P) Ltd

The Supreme Court held that the Completed Contract Method of accounting adopted by the assessees for chit transactions was valid and should not be replaced by the Percentage of Completion Method as proposed by the Assessing Officer. The Court emphasized that the method previously accepted by the Department over several years should continue, as it accurately reflects income under the Income-tax Act, 1961. The appeals by the Department were dismissed, affirming the High Court's decision that the Completed Contract Method was appropriate for the assessment years 1991-1992 to 1997-1998.