COMMNR. OF INCOME TAX, CHENNAI vs M/S. BILAHARI INVESTMENT P. LTD.

The Supreme Court held that the Completed Contract Method of accounting, previously accepted by the Revenue, was appropriate for the assessees' chit transactions for the assessment years 1991-1992 to 1997-1998 under the Income-tax Act, 1961. The Court found that the Assessing Officer's preference for the Percentage of Completion Method was erroneous, as it did not accurately reflect the income for tax purposes. Consequently, the appeals by the Department were dismissed, affirming the High Court's decision in favor of the assessees.