9911796707
TMI Blog2015 (10) TMI 1469X X X X Extracts X X X X X X X X Extracts X X X X ..... hough the assessee used to raise invoices against services to be rendered. 3. The facts of the case are that the Assessing Officer has made the addition of deferred (unearned) income declared by the assessee in the balance sheet as at the end of the respective financial year relevant to the assessment year without crediting the same to the profit and loss account. According to the Assessing Officer, the same is liable for taxation. The Assessing Officer observed that the assessee has adopted a device to postpone the income for the purpose of tax only while crediting its account by the same amount in the previous year relevant to the assessment year. The Assessing Officer also stated in the assessment order that similar issue was considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present case, the income is earned by the assessee only when the services are rendered. The Commissioner of Income-tax(Appeals) further observed that on identical issue, in assessee's own case, for the assessment year 2008-09, the Tribunal held that the assessee had recognized the income correctly and allowed the claim. Accordingly, he directed the Assessing Officer to delete the addition made in all the assessment years under consideration. Against this, the Revenue is in appeal before us. 5. The ld. DR submitted that the CIT(A) erred in not appreciating the fact that the assessee used to raise invoices against services to be rendered and once the invoices are raised, that constitutes a sale to be recognised. The assessee is following mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowing the mercantile system of accounting and therefore, the income accrued during the year was liable to tax according to the method of accounting followed by the assessee and that the assessee has adopted a device by which deferred income has been taken directly to balance sheet under 'current liabilities' instead of crediting the same to the profit and loss account. 8. On appeal, the CIT(A) following the order dated 26.09.09 of the Tribunal in assessee's own case for A.Y. 2003-04 passed in ITA No.1954/Mds/07, allowed the appeal of the assessee. Ld. Departmental Representative could not point out any error in the order of the CIT(A). The only submission was that as the Department has not accepted the order of the Tribunal dated 26.09.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
