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2017 (12) TMI 579 - AT - Income TaxAddition on account of selling and administrative expenses - nature of expenses - revenue or capital - method of accounting - stand of the revenue is that since no income from the project has been offered to tax, all expenditure was required to be capitalized with the project cost - Held that:- A perusal of quantum assessment order for AY 2011-12 as placed on record reveal that the assessee has claimed similar expenditure in that year also which has been allowed by the revenue in an assessment u/s 143(3) despite the fact that unsold inventory has remained with the assessee in the Balance Sheet. The assessee was consistently following a particular method of accounting which was in accordance with Accounting Standard issued by ICAI which is well accepted by higher courts. Further, the revenue has accepted the method adopted by assessee in subsequent year and therefore, precluded from changing stand particularly when both the assessment orders were framed by same assessing officer and on same date. Therefore, on the facts of the case, we find no reason to interfere the with the order of Ld. CIT(A) - Decided against revenue
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