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2016 (11) TMI 1050 - AT - Income TaxAddition made under DEPB entitlements - Method of accounting - cash basis or accrual of entitlement - Held that:- In the present case, the assessee had been following the said procedure consistently and has already offered the income for tax in the year of receipt from the sale of DEPB license. Considering the facts of the present case and the fact that system of accounting of DEPB entitlements on cash/ realization basis has been consistently followed year after year by the assessee in past also and more so since the DEPB entitlements receipt during financial year 2009-10 relevant to A.Y. 2010-11 are already accounted and offered for taxation in the next financial year 2010-11 relevant year 2011-12 on realization basis, therefore after taking into consideration the decision of Hon’ble Supreme Court in the case of CIT Vs. M/s. Excel Industries Ltd., (2013 (10) TMI 324 - SUPREME COURT ), we hold that the assessee is entitled for DEPB credit in the year under consideration and therefore the additions made by the AO are hereby deleted. The AO is directed to re-compute the income in the terms of aforementioned decision. Therefore, these grounds raised by the Assessee are allowed.
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