Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (5) TMI 613 - AT - Income TaxChange in method of accounting to reduce tax liability - Allowability of Deferred revenue expenditure as per the AS-26 issued by the ICAI, New Delhi. - held that:- The accounts of this year and earlier years have been considered by both the lower authorities, but the accounts for subsequent years have not been considered by any one of them for coming to a conclusion whether the change has been made with a view to reduce the tax liability of this year. - In view of Nonsuch Tea Estate Ltd. v. CIT (1974 - TMI - 6434 - SUPREME Court) matter requires to go back to the file of the Assessing Officer for deciding the issue afresh after giving the assessee a reasonable opportunity of being heard. While framing the fresh assessment, he shall consider the accounts of this year, earlier years and subsequent year; AS-26 in the light of entries of intangible assets made therein ; and the cases cited before us as aforesaid. Slow moving item- write off - accepted accounting policy followed from year to year - inventory had no market value on account old and obsolete -was allowed by Tribunal
|