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2014 (1) TMI 536 - AT - Income TaxDeletion of Rs. 30 Lakhs - Method of Accounting – Held that:- The assessee is following cash system uniformly for all customers, and in respect of an item/s of income which is regularly charged and for which they are contractually bound - the figures itself suggest of the payments being received in the regular course of business – it cannot or ought not to lead to a double tax - matter remitted back to the AO and the onus to prove its case with reference to uncertainty and its resolution would be on the assessee - the offer of income pertaining to a preceding year/s on cash basis, would not justify non accounting of income for the current year, or even for a preceding year, which though not received, yet stands accrued during the current year - This is as there could be no option for following a mixed system of accounting - the income not offered to tax on accrual basis, would not preclude it being brought to tax on receipt inasmuch as the same falls within the scope of income u/s. 5 of the Act. Disallowance of prior paid expenses – Held that:- The expenses being admitted as prior period expenditure in the assessee’s accounts - Where an expenditure is disputed or indeterminate, liability would arise only in the year of resolution of the dispute – Decided partly in favour of Revenue.
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