Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (5) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (5) TMI 442 - HC - Income TaxAccrual of income - Treatment of income based on TDS deducted - It was submitted that the amount continued to be treated as an advance and were appropriated towards the expenses actually incurred - Whether the Tribunal fell into error in holding that the sum had to be treated as income and brought to tax – Held that:- The DRP and the Tribunal appear to have accepted the merit of the assessee’s contention, they have not fully endorsed the position, consistently projected by it, that the amounts received were not in the nature of income - As to the exact arrangement that existed between the assessee and its customers who used to remit the amounts towards the expenditure to be incurred by them, has not been discussed - the 18 invoices raised and the net income reported - in the absence of any investigation as to the contractual arrangement that existed between the assessee and its customers, the AO had to necessarily carry out the necessary enquiry or investigation to see the amounts received and how they were expended – the matter is remitted to AO for fresh consideration – Decided in favour of Assessee.
|