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2011 (4) TMI 384 - HC - Income TaxMethod of accounting - TDS u/s 194C - The appellant used to pay substantial amount as advance over and above the payment made against the bill raised by PECO. Such payments were made on recoverable basis - it is not in dispute that payments were made by the assessee to PECO from year to year, which were pending adjustment - The deduction of tax at source from such payment under section 194C of the Act could not determine the character of payment whether it was revenue or capital at the first instance - It has further observed that the impugned payments were made by the assessee against the security by way of bank guarantee, personal guarantee or otherwise and that was admitted by the either party in course of the proceeding under section 131 which would not have been possible unless the payments were intended to be advance payments - Learned Tribunal has not properly discussed the said legal and factual aspects and has erroneously rendered its decision applying the normal rule of cash basis accounting, as against the appellant's claim based on accrual or mercantile basis accounting - appeals are allowed by way of remand
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