https://www.taxtmi.com/highlights?id=82805 The assessee, following the mercantile system of accounting, had treated Annual Maintenance Charges (AMC) collected in advance from customers for lift maintenance as a "current liability" or "Income Received in Advance" in its books. The Tribunal had deleted the addition made by the Assessing Officer (AO) on account of AMC received in advance, shown as a liability in the balance sheet, especially when the AMC period was only one year. However, the High Court held that due to the assessee's monopoly over software, spares, and services, customers had no choice but to renew the AMC. Even if terminated, the assessee was not bound to refund the amount, and customers would be at the mercy of the assessee for maintenance. The assessee's business m..... en-us Tue, 05 Nov 2024 14:23:41 +0530 Tue, 05 Nov 2024 14:23:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=82805 The assessee, following the mercantile system of accounting, had treated Annual Maintenance Charges (AMC) collected in advance from customers for lift maintenance as a "current liability" or "Income Received in Advance" in its books. The Tribunal had deleted the addition made by the Assessing Officer (AO) on account of AMC received in advance, shown as a liability in the balance sheet, especially when the AMC period was only one year. However, the High Court held that due to the assessee's monopoly over software, spares, and services, customers had no choice but to renew the AMC. Even if terminated, the assessee was not bound to refund the amount, and customers would be at the mercy of the assessee for maintenance. The assessee's business m..... Highlights Income Tax Tue, 05 Nov 2024 14:23:41 +0530 https://www.taxtmi.com/highlights?id=82805