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TMI Blog2016 (1) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... ale of the asset is offered to tax, there cannot be any prejudice to the Revenue. Consequently, this Court finds no reason to disagree with the reasoning or conclusion of the ITAT in this regard and therefore is not inclined to frame question on this issue. - Decided against revenue 'Revenue recognition' in respect of certain types of sales made - Held that:- The change in the accounting policy is required to be satisfactorily explained by the Assessee and there has to be a consistency in adopting such a change. It is not the Revenue's case that the above change of accounting policy is not a bona fide. It is consistent with Accounting Standard 9 issued by the Institute of Chartered Accountants of India. The explanation for the change ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the profit and loss account. An example that has been cited by the ITAT is where the asset whose WDV is valued at ₹ 100 is de-capitalized and valued at ₹ 1, depreciation on the remaining ₹ 99 shall continue to be allowed even though the asset does not physically exist in the block of assets. 4. The case of the Revenue is that none of the conditions envisioned under Section 43(6) (c), i.e., reduction of the block of assets on account of some portion thereof being sold, discarded, demolished or destroyed is fulfilled in the instant case and therefore the question of continuing to avail of depreciation on the WDV basis on the block of assets, notwithstanding transfer of some portion thereof to stock-in-trade, ought not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on installation is recognized on completion of installation and acknowledgement by the customer. Sales are recorded at invoice value, net of trade discount, sales taxes, returns, but includiong excise duties. Revenue from maintenance services is recognized as and when the services are actually rendered. Revenue from rental of machines is recognized on a time related basis. Revenue from sale of machines under hire purchase is recognized on execution of the agreement. Revenue from associated finance income is recognized on an accrual basis over the period of the lease taking 'Month' as a unit. The assets under a finance lease are disclosed as a receivable under loans and advances at an amount equal to the net investment in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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