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2018 (4) TMI 995 - ITAT HYDERABADTDS credit - unadmitted accrued income from the scheme - reopening of assessment - method of accounting followed - expenditure claim corresponding to the receipt - Held that:- Assessee has corresponding expenditure on the scheme, which was claimed in the respective assessment years. In case the receipts accounted by assessee in AY. 2006-07 is to be shifted to AY. 2004-05 (impugned assessment year), then the corresponding expenditure has to be correspondingly shifted to AY. 2004-05. Without doing so, it is not correct on the part of the AO to bring gross receipts to tax just because assessee has claimed the TDS on the amounts. Since there is no escapement of any receipts or income over a period of three years and as there is no dispute with reference to the amounts claimed to have been paid to the dealers in the schemes, we cannot appreciate the action of the AO, as confirmed by the Ld.CIT(A), in bringing to tax the gross receipts in this year, without giving benefit of corresponding expenditure. Since assessee has accounted for the amounts over a period of three years on the method of accounting consistently being followed by her, we are of the opinion that there is no need to disturb the P&L A/c. The expenditure claim corresponding to this receipt was more than the income brought to tax, which may result in reducing the originally declared income. Therefore, we are of the opinion that the addition per se is not required to be made - Decided in favour of assessee.
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