2019 (4) TMI 57

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....ellate Tribunal is right in holding that unrealised revenue from sales toits customer, need not be recognized as per Accounting Standard-9 fr the Assessment Year 2013-14, as the assessee had filed a suit for recovery of money in April 2014 and the same is pending? 2. Whether the Appellate Tribunal right in holding that unrealised income need not be recognized on mercantile basis, when the corresponding expenses have been taken into account in the books of the assessee? 2. The brief facts leading to file this Appeal is as follows: 2.(a) Assessee is a Private Limited Company engaged in the business of software develpment. For the Assessment Year 2013-14 the assessee filed his Return of Income Tax declaring loss of Rs. 87,94,316/-. The cas....

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.... applied in the case of assessee. Further, in the relevant year the recovery of the amount was uncertain. Accordingly allowed the appeal as against which the present Tax Appeal filed u/s.260A of the Income Tax Act, 1961. The Appellant have raised Substantial Questions of Law as referred above. 3. The learned Senior Standing Counsel for Income Tax Department Mr.T.R.Senthilkumar appearing for the Appellant would contend that the assessee is following the Mercantile system of accounting whenever the income accrued to the assessee is liable to offer for taxation. Further, the civil suit is filed only in April 2014 which is applicable to the next assessment year. Further, it is the contention of the learned Senior Standing Counsel, since the as....