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2018 (2) TMI 1773 - AT - Income TaxAddition on account of advance commission received in its profit and loss account - method of accounting followed - Held that:- Assessee’s method of accounting of recording the commission on the basis of receipt of material is accepted by the revenue in earlier as well as subsequent assessment years. The assessee has submitted the copies of the account of the various parties from whom the commission has been received from various suppliers during the financial year. The above details are also supported by the invoices of the suppliers where it is clearly mentioned that the material, which had been ordered by the appellant in the month of March 2010, had actually been received by the appellant during the next financial year and booked as purchases by the appellant. Even otherwise, the assessee has offered the income in the subsequent year and the company does not have differential rate of taxation for both the years. Therefore, as such the issue is tax neutral. However, despite the tax neutrality factor, we do not find any infirmity in the order of the Ld. CIT (A) in deleting the above disallowance on its own merit. In the result, the solitary ground of appeal of the revenue is dismissed.
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