2017 (5) TMI 1642

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.... account." 3. The Assessee was engaged in the business of providing basic telephony services as per license obtained from DOT. The assessee filed its return of income for AY 2009-10 on September 29. 2009 declaring total loss of Rs. 5.35.19.88.134. The Assessee's source of income is from the sale of pre-paid and post-paid cards/ connections and the method followed for recognition of the same is accrual and at par with that of the telecom industry. The Assessing Officer made an addition in respect of un-accrued revenue earned from sale of pre-paid cards. The assessee filed appeal before the CIT(A). The CIT(A) deleted the addition by following the earlier Assessment Year's ITAT order in assessee's own case. 4. The Ld. DR relied on the order ....

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.... as services are rendered. The Ld. AR submits that this is a covered matter in assessee's own case for previous Assessment Years 2004-05 and 2006-07. The Ld. AR also relied on the decision of the Delhi Tribunal in the case of BTA Cellcom Ltd. Vs. ITO (ITA No. 133/DEL/2009 dated 30.06.2011) 4. The Ld. DR could not controvert the same. 5. We have heard both the parties and perused the orders placed before us. The Assessee's source of income is from the sale of pre-paid and post-paid cards/ connections and the method followed for recognition of the same is accrual and at par with that of the telecom industry in this year as well. In the earlier Assessment Years i.e. 2004-05 and 2006-07, in assessee's own case the ITAT held the assessee compa....

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....not be mingled and have to be considered separately. " "para 15 .........Every receipt of amount cannot be treated as income and only that part of receipt can be treated as income which can be legally appropriated by the receiver in his own right to the exclusion of its giver. As long as the payer has some right over the amount it has paid to the payee, it cannot be said that income has accrued to the payee. A legal right to appropriate the amount should have accrued in favour of the payee for recognising the sum as income. Unless debt has accrued in favour of payee, it cannot be said that income has accrued to the payee. We have extensively considered the various decisions relied upon by the Id. Counsel for the assessee in order to demon....