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TMI Blog2016 (7) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 - ITA No. 1792/Del/2014 - - - Dated:- 8-6-2016 - SH. I.C. SUDHIR, JUDICIAL MEMBER AND SH. O.P. KANT, ACCOUNTANT MEMBER For The Appellant : Sh. Ajay Kumar Sharma, Adv. For The Respondent : Smt. Rishpal Bedi, JCIT (DR) ORDER PER O.P. KANT, A.M.: This appeal of the assessee is directed order dated 27/01/2014 of the learned Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals), the assessee submitted that it was receiving the commission on behalf of various companies/firms for supplying goods to various State Transport Corporation and the commission of the assessee was due only when the money was received by those companies/firms upon acceptance of the goods by the respective State Transport Corporation. It was further submitted that the assessee could issue bills, only when the payment was actually received by those companies/firms and during the year under consideration the main dispute was in respect of bills issued to M/s. Modi Industries Ltd. It was submitted that M/s Modi Industries Ltd. booked the payment of commission on provisional basis without receipt of bills issued by the assessee, whereas the assessee while filing the return, had taken the credit of the TDS of ₹ 40,245/- as reflected in form No. 26AS on this provisional commission, however, the commission income connected to the TDS was credited in the next assessment year because the bills for the same were issued in next financial year., i.e., financial year 2009-10 corresponding to assessment year 2010-11. It was further stated that bills of ₹ 4,77,183/- were issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ethod of accounting followed by the assessee. 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 (supra). The relevant findings of the said decision are reproduced as under: 6. Sections 198 and 199 of the Act nowhere provide for an exception either to the determination of the income under the aforesaid provisions of sections 28, 29 or as to the method of accounting employed under section 145 of the Act, which alone could be the basis for computation of income under the provisions of sections 28 to 43A of the Act. Section 198 has a limited intention. It only declares the amounts deducted at source under sections 192 to 194, section 194A, section 194B, section 194BB, section 194C, section 194D, section 194E, section 194EE, section 194F, section 194G, section 194H, section 194-I, section 194J, section 194K, section 195, section 196A, section 196B, section 196C and section 196D to be treated as an income received. The purpose of section 198 is not to carve out an exception to section 145 of the Act. Section 199 of the Act has two objectives - one to declare the tax deducted at s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m being assessed in the assessment year 1997- 98, i.e., the year under consideration. But the assessee, in the light of the scheme of the provisions of sections 198 and 199 of the Act, shall not be allowed to claim the credit in respect of these TDS Certificates for which the income has not been returned by her as a result of the method of accounting employed. The credit shall be carried forward and the assessee will get the credit for the present TDS Certificate in the year in which she offers the income to tax on the basis of the method of accounting regularly employed. 4.4 Thus the Tribunal has clearly held that the provisions related to tax deducted at source (TDS) cannot decide the year of taxability of the income and it is decided according to the method of accounting employed under section 145 of the Act. In the case in hand, also the assessee has followed the regular method of accounting of income and accordingly declared income from M/s. Modi Industries Ltd. in the assessment year 2010-11. Thus, respectfully following the ratio of the above said decision, we delete the addition made in the year under consideration and direct the Assessing Officer to assess the inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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