2014 (10) TMI 7

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....For the Respondent : P. K. Jain, Amitabh Agarwal ORDER (Per Hon'ble Dr. Satish Chandra, J) The present appeal is filed by the Department under Section 260A of the Income Tax Act, 1961, against the impugned order dated 07.10.1999 passed by Income Tax Appellate Tribunal, Delhi in I.T.A. No. 388(Del)/93 for the assessment year 1985-86. On 22.11.2006, a coordinate Bench has admitted th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hat the assessee is a private limited company. During the assessment year under consideration, it was engaged in the business of manufacture and sale of television sets. During the assessment year under consideration, the assessee has shown a sum of Rs. 9,28,424/- as prepaid warranty service charges in the books of account. The A.O. treated it as an income and made the addition, which was deleted ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ied the order passed by the A.O. On the other hand, Shri P.K. Jain, the learned Senior Counsel assisted by Shri Abu Bakht, the learned counsel for the assessee has justified the impugned order passed by the Tribunal. He submitted that the service charges were shown separately in the profit & loss account (Page No. 6 to the paper book). Thus, a separate account was maintained for the service cha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... it appears that the amount received by the assessee in the name of the service charges were meant for the service to be rendered in the second year from the date of sale of television sets. It was an advance money for which separate account was maintained. This factual position appears in the books of account and bills maintained by the assessee as observed by the appellate authorities. The job c....