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2014 (6) TMI 472 - ITAT DELHIDeletion of commission income received – Held that:- The assessee is following AS-9 and AS- 29 - In the Accounting Standard-9 issued by the ICAI provides that Revenue is recognised in a transaction involving rendering of services either under the completed service contract method or under the proportionate completion method - the work of commissioning was not completed in the previous year - amount received by the assessee included remuneration towards the services to be provided during extended warranty support also - assessee had to support during three years warranty period. CIT(A) rightly held that the remuneration received for extended warranty period cannot be considered as income - assessee would legally claim the amount only after the rendering the services - receipt was relatable to a particular period in future, it would fructify and mature into income during that period and not earlier - assessee has been following this principle of recognizing revenue in the past also - when the assessee has been following AS-9 and AS-29 and has been following consistent system of accounting, there is no need to interfere with the assessee’s method of accounting - Relying upon Commissioner of Income Tax Versus M/s Excel Industries Ltd. and Mafatlal Industries P. Ltd. [2013 (10) TMI 324 - SUPREME COURT] - there is no case of making the addition in the hands of thee assessee – thus, there was no infirmity in the order of the CIT(A) – Decided against Revenue.
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