2017 (5) TMI 1707 - AT - Income Tax

Addition towards deferred revenue income - HELD THAT - Similar issue came for consideration before this Tribunal in assessee s own case for assessment year 2009-10 2016 (7) TMI 1553 - ITAT CHENNAI wherein the Special Bench of Tribunal allowed the claim of assessee to defer the income we are inclined to dismiss the ground taken by the Revenue.

Summary

Issues:
Deletion of addition of ?2,05,41,950/- towards deferred revenue income by Ld.CIT(A).

Analysis:
The appeal by the Revenue was against the order of the Commissioner of Income-tax(Appeals)-15, Chennai dated 13.07.2016. The sole issue in this appeal pertained to the deletion of addition of ?2,05,41,950/- towards deferred revenue income by the Ld.CIT(A). The assessee contended that the AO had incorrectly considered the figure at ?2,05,41,950/- instead of ?1,62,90,081/- due to the AO not factoring in the sale returns. The assessee relied on a decision of Hon'ble ITAT Chennai in its own case for assessment years 2002-03, 2006-07, 2007-08, and 2008-09. The AO justified the addition by stating that the previous order had not been accepted by the Department. However, the Ld. CIT(A), following the Tribunal's decision in the assessee's own case, directed the AO to adhere to the directions given in the aforementioned case and ruled in favor of the assessee, leading to the Revenue appealing the decision.

Upon hearing both parties, the Tribunal noted that a similar issue was previously considered in the assessee's own case for the assessment year 2009-10. In that case, the Tribunal had held that the Assessing Officer's disallowance was solely based on the pendency of a similar issue before the High Court. The Tribunal further observed that the AR of the assessee had provided the decision of the ITAT D Bench Chennai in the assessee's case for the assessment years 2002-03, 2006-07, 2007-08, and 2008-09. The ITAT had allowed the claim of the assessee to defer income based on a Special Bench decision in the case of M/s Mahindra Holidays & Resorts(India) Ltd. By following the Tribunal's decision, the Ld. CIT(A) directed the Assessing Officer to delete the addition. The Tribunal affirmed the Ld. CIT(A)'s order, dismissing the Revenue's appeal based on the precedent set by the previous decisions.

In light of the Tribunal's previous order and reliance on the Special Bench decision in the case of M/s. Mahindra Holiday & Resorts (India) Ltd., the Tribunal dismissed the Revenue's appeal, upholding the decision of the Ld.CIT(A) to delete the addition towards deferred revenue income. Consequently, the appeal of the Revenue was dismissed, and the order was pronounced on 5th May 2017 at Chennai.