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2019 (8) TMI 514 - HC - Income TaxDeferred revenue expenditure - Revenue expenditure corresponding to the distributors’ commission, distributors’ incentives and outward freight cartage in the year under consideration - according to the Revenue it was required to be spread over on the basis of the ‘matching principle’ - HELD THAT:- Revenue has placed reliance on the observations of the Supreme Court in J. K. Industries Limited v. Union of India [2007 (11) TMI 401 - SUPREME COURT] where it is stated that ‘matching principle’ today forms an important component of accrual basis of accounting. While as a general proposition this may be acceptable, the fact remains that the Assessee claimed the entire expense as revenue expenditure in his accounts for AY 2006-07 and if sought to be altered on the basis of the above principle it would indisputably affect the accounts of the subsequent year. This is significant because in the AY in question, the AO has not rejected the accounts on the basis that it does not present the true and correct picture of the business of the Assessee. Court finds that that view taken by the ITAT is a plausible one and does not give rise to any substantial question of law. The appeal is dismissed in the above terms.
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