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2016 (7) TMI 99 - ITAT DELHIYear of taxability of income - as per regular method of accounting and not as per the year in which TDS has been deducted - Revenue wants to assess the income in the year in which TDS deducted on the income, whereas assessee wants to offer the income to tax according to method of accounting regularly followed by the assessee - Held that:- The issue in dispute is squarely covered by the finding of the Hon’ble third member of the Tribunal in the case of Smt. Varsha G Salunhke Vs. DCIT (2005 (9) TMI 226 - ITAT BOMBAY-F ). Thus, the Tribunal has clearly held that the provisions related to TDS cannot decide the year of taxability of the income and it is decided according to the method of accounting employed u/s 145 of the Act. In the case in hand, also the assessee has followed the regular method of accounting of income and accordingly declared its income. Thus, respectfully following the ratio of the above said decision, we delete the addition made in the year under consideration and direct the AO to assess the income in accordance with the regular method of accounting followed by the assessee. Further, the credit of TDS should also be given in the respective assessment year in which the income is offered to tax - Decided partly in favour of assessee Loan processing fee - revenue or capital expenditure - Held that:- As a loan processing fee has been paid for the purpose of purchase of a car, which is a capital asset and paid or accrued before the capital asset was put to first use, therefore, this amount being connected with the purchase price, it was part of actual cost of the asset to the assessee thus deserves to be capitalized and not allowed as a Revenue expense, accordingly, we find no infirmity in the finding of the learned Commissioner of Income-tax(Appeals) on the issue in dispute and accordingly we uphold the same. - Decided against assessee
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