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2020 (1) TMI 1520 - AT - Income TaxRevenue recognition - Deferred income out of the grant received by the assessee - HELD THAT:- We find that the assessee has followed percentile completion method of revenue recognition which is followed in the case of contract work on broad principle that income is accrued corresponding to the expenditure incurred towards execution of the contract project. Since income has been offered by the assessee as and when accrued to it, we do not find any error in the order of CIT(A) on the issue in dispute. We also note that the assessee is consistently following this accounting method and thus, CIT(A) has deleted the addition in view of the rule of consistency. In view of the facts and circumstances of the case above, we do not find any error in the order of the learned CIT(A) on the issue in dispute. Accordingly, we uphold the same. The ground no. 1 of the appeal of the Revenue is dismissed. Addition on account of difference amount paid by NIRD as 26AS - National Institute of Rural Development (NIRD) deducted TDS on the entire grant issued to the assessing during the year under consideration and the assessee offered income during the year under consideration and claimed the entire credit during the year - CIT-A deleted the addition - HELD THAT:- CIT(A) has followed relevant provisions of Section 199 of the Act read with Rule 37(BA)(3) of the IT Rules, 1962 which specify that credit of the tax deducted at source and paid to the Central Government, shall be given for the assessment year for which such income is assessable. In view of the above, we do not find any error in the order of the learned CIT(A) on the issue in dispute - Decided in favour of assessee.
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