2018 (9) TMI 1242

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.... the assessee in its appeal is against the taxability of commission received in advance in respect of purchases accounted for in the next financial year. 3. Briefly stated, the facts of this ground are that the assessee declared advance commission received amounting to Rs. 37.75 lac which was not offered for tax. The Assessing Officer opined that since the assessee was following mercantile system of accounting, such commission received was liable to be taxed. The ld. CIT(A) accepted the assessee's contention to the extent of commission income of Rs. 32,37,000/- which was brought forward from the assessment year 2008-09 and offered to tax during assessment year 2009-10. The remaining amount was held to be chargeable to tax. Both the sides....

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....86/-, except for a sum of Rs. 1,17,556/-, represented written off balances of debtors. A detail of such debtors written off was furnished to the ld. CIT(A), who sent the same to the Assessing Officer for remand report. Considering the remand report, the ld. CIT(A) deleted the addition to the extent of Rs. 18,35,530/-. Remaining addition of Rs. 1,17,556/- was upheld, which represented 'Provisions for reserve and doubtful debts written off.' The assessee accepted the confirmation of addition to the extent of Rs. 1,17,557/- and the Revenue has assailed the deletion of addition of Rs. 18,35,530/-. 6. After considering the rival submissions and perusing the relevant material on record, it is found that the amount receivable from debtors was, ....

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....icing that Rs. 11,27,955/- was the amount of sales-tax paid by the assessee during the year in respect of sales-tax assessments completed and such amount was not of a penal nature. The ld. DR could not controvert the findings recorded by the ld. CIT(A) with any cogent evidence. Since the said sum represented the payment of sales-tax made during the year, the same, in our considered opinion, was rightly allowed by the ld. CIT(A). We, therefore, uphold the impugned order on this score. 9. In the result, the appeal of the assessee is allowed and that of the Revenue is dismissed. Assessment Year 2011-12 10. The Department has filed this appeal on the solitary effective ground reading as under:- "That the ld.CIT (Appeals) has e....