TMI Blog2019 (5) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Revenue for the four subsequent AYs, which were all scrutiny assessments. The Court is not persuaded that any substantial question of law arises for consideration of the Court. - Decided against revenue - ITA 267/2019 - - - Dated:- 17-5-2019 - S. MURALIDHAR AND I.S. MEHTA JJ. Appellant Through: Mr. Ruchir Bhatia, Senior Standing Counsel for the Revenue. Respondent Through: Mr. Ved Jain, Ms. Mekhala Benny and Mr. Kislaya Parashar, Advocates. O R D E R CM 13240/2019 (delay) 1. For the reasons explained in the application, the delay in re-filing the appeal is condoned and the application is allowed. ITA 267/2019 2.The Revenue is in appeal agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Commission for insurance agency business is recognized in the month of insurance / renewal of the policy and on payment of premium by the policy holder. During the current year, the company has re-evaluated its accounting policy and has accordingly linked the commission income to the payment of premium by the policy holder. This has been primarily driven due to historical trends and past experience. The impact in lieu of the aforesaid change in accounting policy for the year is ₹ 44,914,054/- . 6. The Assessee pointed out that the actual commission that had accrued during the AY in question was ₹ 1,64, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holders in F.Y. 2010-11 and in subsequent period. If so, no addition is called for. Since the amount of ₹ 4.49 crores pertains to hundreds of policies, therefore, the AO may resort to random verification. Needless to mention that AO will provide sufficient opportunity to the assessee to produce the account of commission of ₹ 4.49 crores with supporting evidences. In the result, this ground of appeal is allowed with direction to the AO. 8. Aggrieved by the above order of the CIT (A), the Revenue went in appeal before the ITAT, which concurred with the view of the CIT (A). The ITAT noted that the Assessee had adopted the mercantile system of accounting consistently even in the subsequent AYs, and that was accepted by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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