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2015 (4) TMI 139 - ITAT PUNEAccrual of income - Contingent income not credited to Profit & Loss account - CIT(A) deleted the addition - as per revenue claim of expenditure by the principal and credit of income to the account of assessee after deduction of tax thereof are irrelevant considerations as per the method of accounting regularly followed by the assessee - Held that:- Work relate to the installation and erection of the equipment has been completed in subsequent years as the time taken varies between 1 month to 21 months. Therefore, the accrual of income earned happened only in subsequent years and not in the impugned F.Y. 2008-09 relevant to A.Y. 2009-10 as held by the Assessing Officer. Therefore, the assessee was justified to content that income accrues only in subsequent year when the assessee gets an enforceable right to receive the same. The similar view has been taken in the case of CIT Vs Lucas Indian Services Ltd. (2008 (11) TMI 217 - MADRAS HIGH COURT). In view of above factual and legal discussion, the addition made by Assessing Officer was rightly deleted by CIT(A). This reasoned finding of CIT(A) needs no interference from our side. - Decided in favour of assessee.
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