TMI Blog2018 (5) TMI 1692X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. - I.T.A. No.2484/Ahd/2016 - - - Dated:- 24-5-2018 - SHRI WASEEM AHMED, ACCOUNTANT MEMBER And SHRI MAHAVIR PRASAD, JUDICIAL MEMBER For The Appellant : Dr. Jayant Jhveri, Sr.D.R. For The Respondent : Shri S. N. Soparkar (Adv.) ORDER PER WASEEM AHMED, ACCOUNTANT MEMBER: The captioned appeal has been filed at the instance of the Revenue against the appellate order of the Commissioner of Income Tax(Appeals)-10, Ahmedabad [CIT(A) in short] vide appeal no.CIT(A)-10/ITO-WD/1(3)(1)/206/15-16 dated 21/07/2016 arising in the assessment order passed under s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) dated 26/03/2015 relevant to Assessment Year (AY) 2012-13. 2. The Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the facts, has allowed the appeal of the appellant on this ground. The decision of CIT(A) for A.Y. 2010-11 is reproduced as under:- 4.3 The contention of the Ld. AR are that the appellant is carrying on the business directly as well as through authorized representative dealers (ARDs) appointed by the appellant and sales service provider (SSPs) appointed by the parent company namely Hero Moto Corp Ltd. The sales through ARDs and SSPs are made of consignment basis; the sales invoice are issued by the appellant and the entire sales consideration is also directly received by her; commission is being paid to ARDs and SSPs on the sales made thorough them. Since the appellant's vehicles are kept with ARDs and SSPs for display, te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consistently followed over the years. As seen from the assessment order u/s 143(3) passed in the appellant's case for the immediately preceding A.Y. 2009-10, the income returned is accepted and no addition in respect of trade deposits received is made. Treating the security deposits as trade proceeds without the actual sales taking place is against the principle of accountancy. Moreover, given the consistent method followed by applicant, such as exercise will be revenue neutral. To be specific in the year under consideration as against the trade deposits of ₹ 35.5 lakhs received, appellant had repaid ₹ 26 lakhs out of trade deposits. In effect of the net trade deposits received during the year were only the tune of ₹ 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s through Authorized Representative Dealers (ARDs) appointed by the assessee and Sales Service Providers (SSPs) appointed by Hero Motors Ltd, Since assessee's vehicles are kept with ARDs and SSPs for display, test drive, etc. trade deposits are received from them by the assessee by way of security deposits. The Ld.CIT(A) while deleting the addition has given a finding that as and when the sales take place through ARDs and SSPs, the sale proceeds are accounted as income by the assessee and this method of accounting has been consistently followed by the assessee and has also been accepted by the Revenue in the scrutiny proceedings. He has further noted that during the year under consideration assessee had received trade deposits of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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