TaxTMI 
TaxTMI 
2021 (1) TMI 44
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....t that the issue is covered in favour of the assessee by the decision of the co-ordinate bench of the Tribunal in assessee's own case in ITA No.8674/M/2011 & 5157/M/2011 & ors. A.Y. 2005-06 vide order dated 30.08.2019 wherein the identical issue has been decided in favour of the assessee by directing the AO to delete the part disallowance sustained by Ld. CIT(A). The ld DR fairly agreed to the submission of the assessee on this issue but relied on the order of authorities below. 4. We have considered rival submissions and perused the material on record including the decision of the co-ordinate bench of the Tribunal in ITA No.8674/M/2011 A.Y. 2005-06 & ors. There is no dispute between the parties with regard to the basic facts relating to the disputed addition. Since the issue before us is identical to one as decided by the co-ordinate bench of the Tribunal as stated hereinabove, we are therefore inclined to hold that part disallowance sustained by the Ld. CIT(A) is also to be deleted. Accordingly, this ground of appeal is allowed. 5. The issue raised in 2nd ground of appeal is against the order of Ld. CIT(A) confirming the disallowance of renovation expenses for office premis....
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....cision of learned Commissioner (Appeals) on this issue is, therefore, set aside. Ground raised is allowed." 8. The facts before us are identical and we, therefore, respectfully following the co-ordinate bench of the Tribunal in the earlier year we allow this ground No.2 raised by the assessee. 9. The issue raised in 3rd ground of appeal is against sustaining the addition of Rs. 2,61,40,340/- as made by the AO on account of change in revenue recognition policy. 10. The Ld. Counsel of the assessee pointed out that the issue is squarely covered in favour of the assessee in above ITA vide para No.41, 42, 43, 44 & 45 wherein the issue was restored to the file of the AO to decide the issue independently and directly in accordance with law and jurisdictional precedent afresh and if the assessee can establish the change in the revenue recognition policy is for bonafide and valid reasons, the question for any addition on this count would not arise. The Ld. Counsel submitted that the current year may also be decided by restoring the same to the file of the AO. 11. After perusing the decision of the co-ordinate bench of the Tribunal and facts of the case, we find that the issue is....
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....ccounts of the assessee or where the method of accounting provided in sub-section (1) has not been regularly followed by the assessee or income has not been computed in accordance with Accounting Standard notified under sub-section (2), he may proceed to make an assessment to the best of his judgment as provided under section 144 of the Act. 42. It is evident, after examining the factual aspect and the submissions of the assessee the Assessing Officer has observed in the assessment order, though, the assessee to justify with valid reasons the change in revenue recognition policy, however, it was not able to furnish any satisfactory reason for such change except stating that accounts are to be prepared as per global standard. Further, he has observed that the assessee has not produced any documentary evidence regarding the global standards allegedly followed by it and how it is relevant in the context of Indian Accounting Standard. It is also crucial to bear in mind, as regards Sales Tax and Service Tax the assessee is complying to the statutory requirement in terms with the earlier practice followed by it. In other words, it is paying Sales Tax and Service Tax on the basis....
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....sion in ground No.1 would render the ground No.1 of Revenue's appeal as infructuous. Hence, this ground raised by Revenue is dismissed accordingly. 21. The issue raised in ground No.2 is against the deletion of disallowance of Rs. 18,57,627/- on account of renovation expenses for office premises. 22. We have perused the ITA No.8674/M/2011 A.Y. 2005-06 and observed that identical issue has been decided by the coITA ordinate bench of the Tribunal in favour of the assessee. The operative part is as under: "20. We have considered rival submissions and perused the material on record. We have also applied our mind to the decisions relied upon. The issue before us is, whether the expenditure incurred by the assessee towards repair/renovation of leased premise is of capital or revenue nature. On a perusal of the details of expenditure incurred, as submitted in the paper book, we are of the view that by incurring such expenditure, the assessee has not brought into existence any capital asset of enduring nature. A reference to Explanation-1 to section 32(1) of the Act, would reveal that it speaks of capital expenditure incurred towards construction of any structure or renovati....