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2021 (3) TMI 644 - ITAT BANGALOREChange in method of revenue recognition - Non recognizing income by changing the method - Accounting standard - change from proportionate completion method to completed contract method - bonafide change - HELD THAT:- As decided in own case of Assessee, he is at liberty to change the method of accounting provided the change in the method of accounting is bonafide and is being consistently followed subsequently. But the method followed by the Assessee in the present case of postponing revenue recognition without postponing the cost incurred for earning the revenue cannot be said to be proper. There is no valid explanation for claiming expenses related to the CAS services rendered by the Assessee when recognition of income therefrom is postponed. The change in the method of accounting was therefore not bonafide and was rightly rejected by the revenue authorities.We find no merit in the claim of the Assessee in this regard. - Decided against assessee. Denial of TDS Credit on advances received - whether credit for TDS has to be provided to the Appellant irrespective of the year to which the income relates? - HELD THAT:- We deem it appropriate to direct the Assessing Officer to give credit as per reconciliation statement submitted by the assessee after due verification. This ground is remitted to the file of Assessing Officer for consideration afresh. Non-grant of depreciation on Foreign Exchange Loss disallowed as Capital Expenses - HELD THAT:- We remit this issue to the file of Assessing Officer for verification with records and decide accordingly as per law. Levy of interest u/s.234B of the Act, is consequential in nature.
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