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2018 (9) TMI 1160 - AT - Income TaxAddition made on account of difference in credit of income as per 26AS statement and income credited in Income and Expenditure accounts - Held that:- We note that these timing differences in recognition of revenue with corresponding TDS, will get adjusted in future years and hence there is no tax evasion on the part of the assessee. Moreover, the details of the impugned addition at ₹ 1,93,02,985/- made by the AO is not available, that is, on what basis he worked out the addition at ₹ 1,93,02,985/-, therefore, we do not agree with the addition made by assessing officer. CIT(A) has rightly deleted the impugned addition. - Decided against revenue Provision made on accrual basis for future expense - Held that:- We note that the amount represents entitlements due to the respective Chapters computed on the basis of collections from membership subscription under the control, and that these amounts should be applied by the respective Chapters. Therefore, it is an ascertained expenditure which obviously must be applied by the Chapters. As far as the Head Office is concerned, obviously in the Consolidated Income and Expenditure Account this is styled as 'Provision', but in effect it is not so, and for the application of the expenditure is done by the respective Chapters. Also, as seen in the Consolidated Income and Expenditure Account, this item of expenditure/style of narration has also been there in earlier years. So it has been a regular feature, being expenditure applied by the Chapters and hence it is not a ‘provision’. - Decided against revenue Depreciation claimed without appreciating the fact that the cost of acquisition earlier years thereby reducing written down value to nil - Held that:- We are of the view that the depreciation needs to be allowed. This is a primary accepted principle of accounting. The assets obviously undergo wear and tear/diminution in value and therefore the decline in value has to be accounted for on a systematic way. Be as it may, there has been an insertion in the Act vide Finance (No. 2) Act, 2014, w.e.f. 01.04.2015, being sub-section (6) to section 11 whereby the provisions of section 11 shall be determined without any deduction or allowance by way of depreciation or otherwise in respect of any asset. This insertion is w.e.f. 01.04.2015, and therefore is not applicable to the AY 2010-11 to the assessee under consideration. - Decided against revenue
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