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TMI Blog2013 (5) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... In favour of assessee. Tax an 50% of the money forfeited by assessee from the defaulted members - Held that:- Assessee is consistently following the accounting treatment in a rationale manner as 50% of the retention money was kept aside by assessee to meet the eventuality of having to refund the amounts to prospective customers who do not pay the remaining installments because of genuine reasons of emergency, accident, hospitalization etc. This method of accounting has been followed by assessee right since its inception and has always been accepted in earlier years. Had AO excluded the amount offered during the year on the same principles in which he brought the balance 50% of the amount to tax, there could have been some justification i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estige Holidays Resorts Pvt. Ltd in addition to the commission. According to AO, this amount of reimbursement was part of commission itself on which TDS under section 194H was applicable and as assessee has not deducted any tax, the same is to be disallowed under section 40(a)(ia). He gives a findings that the amounts are reimbursement of various expenditures, but considered them as part of commission. Assessee made detailed submissions both on facts and on law which were recorded in para 2.3 of the CIT (A) order elaborately and ultimately he deletes the same by holding as under:- "2.4 I have considered the submissions of the learned Counsel and in view of the facts brought on record and submissions made and decisions of Hon'ble Bombay Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght to tax the balance 50% of Rs.45,885 in the year under consideration inspite of assessee's objections in doing so. Before the CIT (A) it was submitted that: i) As assessee is engaged in the business of selling holiday points based timeshares. ii) In terms of the method of accounting followed by assessee it recognizes income from sales of time share only when the full contract value is received. This is in accordance with the Accounting standard 9 issued by the Institute of Chartered Accounts of India on Revenue recognition. iii) Accordingly persons who have opted for payment of the membership fees in installments are neither recognized as the "members" nor are the fees received by the accounted for as "income" till the time the ful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x during the year under consideration, the break-up of which is as follows: a) Rs.45,885 (50% of the retention money of Rs.91,770 received during the year) b) Rs.1,04,254(50% of the retention money of Rs.2,08,508 received during the preceding previous year i.e. AY 2007-08). 6. On considering the facts and method of accounting being followed and also the fact that 50% of the retention money forfeited during earlier year was offered during the year on a consistent method of accounting, the learned CIT (A) deleted the same holding it as under:- "3.4 I have considered the submissions of the learned Counsel and the facts brought on record. The decision of the Hon'ble Supreme Court in the case of Rotork Controls India (P) Ltd vs. CIT (200 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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