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2017 (5) TMI 1642 - ITAT DELHIRevenue recognition - Addition on account of unaccrued revenue from the sale of prepaid cards and recognized in the books of account - Held that:- Assessee’s source of income is from the sale of pre-paid and post-paid cards/ connections and the method followed for recognition of the same is accrual and at par with that of the telecom industry in this year as well. In the earlier Assessment Years i.e. 2004-05 and 2006-07, in assessee’s own case the ITAT held the assessee company cannot appropriate the charges relating to available talk time to the exclusion of subscriber as long as it is under obligation to provide the said services. Therefore, the ITAT was of the opinion that CIT(A) in principle has rightly accepted the mode of revenue recognition by the assessee in those Assessment Year. - Decided against revenue.
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