TaxTMI 
TaxTMI 
2019 (9) TMI 495
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....961, (the 'Act'). 2. The ground of appeal No. 1.1 & 1.2 1.1 On the facts and circumstances of the case and in law, the Ld. CIT(A) erred in confirming the additions amounting to Rs. 6,09,38,321 made by the Assessing Officer on account of advance billings without appreciating the fact that the said amount has not accrued as income during the year under consideration. 1.2 The Appellant prays that the change in the method of accounting adopted by the Appellant since AY 2004-05 is a bonafide change and as per the law, the same be accepted and the addition of Rs. 6,09,38,321 to the total income be deleted. 2.1 During the course of assessment proceedings, the Assessing Officer (AO) observed that as per Schedule 8 (current l....
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.... year and if otherwise the sum is allowable as a revenue expense then whether the sum has been actually paid or not is immaterial and the liability so incurred has got to be allowed as a revenue expense. (2) If, after the accrual of the income or incurring of the liability, any party forgoes the sum by way of gift, charity or the like and voluntarily, which cannot be characterised as a remission on grounds of commercial expediency, then such forgoing cannot affect the accrual of the income for the purpose of carrying on the business and the liability so incurred cannot be obliterated by such forgoing (3) Mere book entries are not decisive of the matter. What has to be seen and found out is the effect of the forgoing in law....
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....obligation to provide accommodation to the member for one week every year till the currency of membership. We find that in the case under appeal there was tenure of license/product but there was no certainty that in every subsequent year some determinate service had to be provided by it, that there was no determined/committed expenditure which the assessee was required to incur in the future years towards the corresponding share of revenue, that the indeterminate event of providing of updates and services as and when the they were developed which had been in keeping with the industrial norm. The assessee had no right to postpone the revenue. Inspite of adequate opportunitie, the assessee had not filed any facts before the FAA or us, as stat....
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....rder, we find the assessee's contention that revenue on account of advance billing should be spread over for a period of time has been rejected by the AO which has been confirmed by the Tribunal also. Once that is so, then contention of the assessee that 'royalty' which is payable on such advance billing in accordance with the agreement, should also consequently be allowed in this year only. The DRP has acknowledged this fact and has directed that if the assessee finally accepts the assessability of entire billing amount as revenue in the current year, then the assessee would be entitled for 30% deduction on account of royalty. Thus, AO is directed to allow the claim of deduction of royalty in this year in accordance with law. Thus, Ground ....
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....007 Vertex Customers Services India Pvt. Ltd. 113419 -do- 31.03.2007 Integrix (I) P Ltd. 968070 -do- 31.12.2006 HCL Comnet Systems & Services Ltd. 54367 -do- 15.05.2006 IQ Resources Pvt. Ltd. 11651 -do- 27.07.2006 -do- 12245 -do- -do- -do- 12245 -do- -do- -do- 12245 -do- 21.06.2006 -do- 11929 -do- 29.01.2007 -do- 12245 -do- -do- -do- 12245 -do- Total 1431988 The AO made an addition of Rs. 14,31,988/- on the ground that the assessee failed to prove that the above amount was disclosed by it in its return of income. In appeal, the Ld. CIT(A) confirmed the above addition made by the AO. 4.2 Befo....
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....ent, one of which is regarding the issue of non-credit of TDS to the taxpayer due to TDS mismatch despite the assesse furnishing before the assessing officer, TDS certificate issued by the deductor. 3. In view of the order of the Hon'ble Delhi High Court (reference: Para 50 of the order), it has been decided by the Board that when an assessee approaches the Assessing Officer with requisite details and particulars in the form of TDS certificate as an evidence against any mismatched amount, the said Assessing Officer will verify whether or not the deductor has made payment of the TDS in the Government Account and if the payment has been made, credit of the same should be given to the assessee. However, the Assessing Officer is at....