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2016 (8) TMI 1354 - ITAT AHMEDABADNature of receipt - revenue or capital - addition considering the trade deposits received by the assessee as the income of assessee - Held that:- CIT(A) while deleting the addition has correctly noted that assessee is carrying on the business sales through Authorized Representative Dealers (ARDs) appointed by the assessee and Sales Service Providers (SSPs) appointed by Hero Motors Ltd. Since assessee’s vehicles are kept with ARDs and SSPs for display, test drive, etc. trade deposits are received from them by the assessee by way of security deposits. As and when the sales take place through ARDs and SSPs, the sale proceeds are accounted as income by the assessee and this method of accounting has been consistently followed by the assessee and has also been accepted by the Revenue in the scrutiny proceedings. As during the year under consideration assessee had received trade deposits of ₹ 35.5 lacs and has repaid ₹ 26 lacs out of it and in effect the net trade received by the assessee during the year was only to the tune of ₹ 9.5 lacs. - Nothing to go against CIT's order - Decided against revenue
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