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TMI Blog2024 (7) TMI 1626X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Appellate Tribunal ["Tribunal"] dated 14 November 2023 and posits the following questions for our consideration:- "a. Whether even under mercantile system of accounting, only income which has actually 'accrued', is required to be offered for tax? b. Whether income in respect of unclaimed goods stored at CFS / ICD's maintained by the Assessee can be said to accrue merely because the goods continue to be stored indefinitely? c. Whether ITAT's direction to merely telescope income already offered for tax on receipt basis against Income taxable on accrual basis is misconceived / perverse on the facts of the case, and on an interpretation of section 150(2) of the Customs Act 1962?" 2. However and as has been rightly po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... them to take delivery of the consignment by paying custom duty and warehousing charges at the time of the actual release of the imported goods. These warehousing charges are being accounted by the assessee on realisation basis. The contention of the assessee that realization of such warehousing charges is uncertain as sometimes paying of custom duty and warehousing charges becomes commercially unviable to the importer and therefore importers are not induced to take delivery of such consignment. According to the Assessing Officer, the assessee is following Mercantile system and therefore income has to be booked as and when it is accrued to the assessee. The Assessing Officer noted that even if the importer decided not to get his cargo releas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. cash basis, but the assessee is following Mercantile system of the accounting and therefore income has to be credited in the profit and loss account as and when it is accrued to the assessee. The Assessing Officer has added the income from warehousing charges which is accrued during the year under consideration. The learned Counsel has agreed in principle that warehousing charges is liable to be assessed on accrual basis in view of Mercantile system followed by the assessee, but he emphasized that income which has been tax on accrual basis in the year under consideration, should not subjected to tax twice i.e once on Mercantile basis and second on cash basis. We concur with the above contention of the Learned Counsel of the assessee. Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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