https://www.taxtmi.com/caselaws?id=462251 ITAT Cochin held that a company developing intellectual property must recognize income when project work commences based on customer orders and advance payments, even for modeling work pending approval. The Tribunal confirmed income recognition following the assessee's regular accounting method, as project work began upon receiving customer orders with advance payment. Regarding unabsorbed losses and depreciation, the Tribunal ruled that having business income is not prerequisite for claiming these benefits - only continuing business activity matters. However, the assessing officer must verify whether returns were filed timely and losses properly quantified under the Income-tax Act. The appeal was partly allowed for statistical purposes. en-us Fri, 07 Jun 2013 00:00:00 +0530 Thu, 05 Jun 2025 12:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462251 ITAT Cochin held that a company developing intellectual property must recognize income when project work commences based on customer orders and advance payments, even for modeling work pending approval. The Tribunal confirmed income recognition following the assessee's regular accounting method, as project work began upon receiving customer orders with advance payment. Regarding unabsorbed losses and depreciation, the Tribunal ruled that having business income is not prerequisite for claiming these benefits - only continuing business activity matters. However, the assessing officer must verify whether returns were filed timely and losses properly quantified under the Income-tax Act. The appeal was partly allowed for statistical purposes. Case-Laws Income Tax Fri, 07 Jun 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462251