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2020 (8) TMI 671 - AT - Income TaxRevision of financial accounts - cancellation of sales in respect of sales effected during the year under review - revised computation filed by the assessee company claiming a deduction on account of revision of financial accounts on cancellation of sales - procedure for revised audit account - HELD THAT:- Assessee has revised the audited account and has given the relevant documentary evidence before the CIT (A) upon which the Assessing Officer has also commented through the remand report. AO has not pointed out any defects in the audited accounts which are allowed to be revised as per the guidelines issued by the Ministry of Finance and Company Affairs. CIT(A) rightly held that the artificial and hypothetical income created by mere general entries which were subsequently reverse cannot be brought to tax. Besides that the assessee made the statement before us that the income derived from the said project in subsequent Assessment Years has been offered to tax by the assessee. Thus, the Revenue is not at loss at any point of time and hence the treatment given by the CIT(A) by directing the Assessing Officer to allow the claim of ₹ 9,00,00,000/- on account of revision of financial accounts is just and correct. - Decided in favour of assessee.
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