https://www.taxtmi.com/caselaws?id=456984 ITAT Mumbai upheld CIT(A)'s deletion of addition regarding unearned revenue on sale transactions. The assessee company consistently followed the accounting practice of deferring revenue recognition. The tribunal found the treatment revenue-neutral since the assessee deferred both receipts and corresponding royalty/charges payable in the same ratio, maintaining the matching principle. The assessee had offered the income before CIT(A) with conditions for allowing related deferred expenses. All revenue grounds were dismissed. en-us Mon, 14 Aug 2023 00:00:00 +0530 Thu, 29 Aug 2024 21:49:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456984 ITAT Mumbai upheld CIT(A)'s deletion of addition regarding unearned revenue on sale transactions. The assessee company consistently followed the accounting practice of deferring revenue recognition. The tribunal found the treatment revenue-neutral since the assessee deferred both receipts and corresponding royalty/charges payable in the same ratio, maintaining the matching principle. The assessee had offered the income before CIT(A) with conditions for allowing related deferred expenses. All revenue grounds were dismissed. Case-Laws Income Tax Mon, 14 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456984