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2014 (2) TMI 240 - AT - Income TaxAddition to the income by way of brokerage – accrual of income - Held that:- The TDS certificates would not be a clinching material to determine the actual income assessable in the hands of the assessee - the CIT(A) while accepting the claims of the assessee with regard to the returned incomes for the years under appeal, also held at the same time that the assessee is eligible to claim credit for TDS only in respect of income offered for tax in the relevant year. In that process, the CIT(A) also upheld the view taken by the Assessing Officer that the assessee cannot claim credit for the TDS unless and until the income in relation to which TDS, was made was offered to tax in the relevant year - the assessee is found to be a del cre dere agent, the role of the assessee, as observed by the CIT(A) in the order, does not cease simply on booking the order for the seller or the delivery of goods to the purchaser, but extends till the time the sale proceeds are realized by the seller from the buyer - Delcredere agent, in which actual receipt of the brokerage would depend on the actual realization of the sale proceeds by the seller from the purchaser, as claimed by the assessee and accepted by the CIT(A), assessee is justified in following cash system of accounting, finding it to be appropriate for its business - When the assessee claims to be following that method of accounting consistently, and it has been recognized by the statute, there is no justification for the Assessing Officer to disturb the book results disclosed by the assessee – there was no infirmity in the order of the CIT(A) – Decided against Revenue. Disallowance of insurance charges u/s 37(1) of the Act – Held that:- There is no justification in contesting the orders of the Commissioners (Appeal) on this issue for the assessment years 2002-03 and 2004-05, as they simply followed the reasoning given in the appellate order of the CIT(A) for the assessment year 2003-04 – it was correctly observed by the CIT(A) in the order for assessment year 2003-04, which has been adopted for the other two years, assessee, being a del cre dere agent, is responsible for payment of sale amounts to the sellers, which in turn depends on the safe delivery of goods to the buyers - it may also be in the nature of an incentive provided by the assessee to the buyers and sellers – there was no infirmity in the orders of the CIT(A) an he was justified in holding that the insurance expenses claimed by the assessee are allowable under S.37(1) of the Act – Decided against Revenue.
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