https://www.taxtmi.com/caselaws?id=177941 The Supreme Court upheld the CIT(A)'s decision regarding the recognition of income under the mercantile system of accounting for a price rise in raw material, emphasizing that income accrues when the assessee gains an enforceable right to receive it. The Tribunal dismissed the Revenue's appeal. Regarding the disallowance of provisions for raw material and components, the CIT(A) reversed the A.O.'s decision, finding the liability genuine and identifiable. The Tribunal set aside the issue for the A.O. to reexamine based on relevant documents, partly allowing the Revenue's appeal. The judgment was delivered by the ITAT Pune, providing clarity on accounting principles. en-us Wed, 09 Feb 2011 00:00:00 +0530 Fri, 22 Jan 2016 13:07:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177941 The Supreme Court upheld the CIT(A)'s decision regarding the recognition of income under the mercantile system of accounting for a price rise in raw material, emphasizing that income accrues when the assessee gains an enforceable right to receive it. The Tribunal dismissed the Revenue's appeal. Regarding the disallowance of provisions for raw material and components, the CIT(A) reversed the A.O.'s decision, finding the liability genuine and identifiable. The Tribunal set aside the issue for the A.O. to reexamine based on relevant documents, partly allowing the Revenue's appeal. The judgment was delivered by the ITAT Pune, providing clarity on accounting principles. Case-Laws Income Tax Wed, 09 Feb 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177941