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2016 (1) TMI 945 - HC - Income TaxDepreciation on the de-capitalized assets on the written down value ('WDV') basis on the block of assets in terms of Section 43(6) (c) - itat allowed the claim - as per revenue some of the assets had been converted into stock-in-trade at nominal value - Held that:- As noted by the ITAT this method of de-capitalising assets which have ceased to be of utility has been consistently followed by the Assessee. The Revenue has been unable to demonstrate how the Revenue's interest is adversely affected thereby or if there is any escapement of income from assessment. On the other hand if indeed the profit as a result of subsequent sale of the asset is offered to tax, there cannot be any prejudice to the Revenue. Consequently, this Court finds no reason to disagree with the reasoning or conclusion of the ITAT in this regard and therefore is not inclined to frame question on this issue. - Decided against revenue 'Revenue recognition' in respect of certain types of sales made - Held that:- The change in the accounting policy is required to be satisfactorily explained by the Assessee and there has to be a consistency in adopting such a change. It is not the Revenue's case that the above change of accounting policy is not a bona fide. It is consistent with Accounting Standard 9 issued by the Institute of Chartered Accountants of India. The explanation for the change has been furnished by the Assessee as part of its audited accounts. It is pointed out that in subsequent AY the change was recognized and accepted by the Revenue.- Decided against revenue
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