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TMI Blog2009 (11) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... of the price till the conditions of contract were fulfilled - HELD THAT:- We find that the Assessee had not received right only on 85 per cent of amount which can be enforced in court of law. No debt came into existence in respect of balance amount of 15 per cent in respect of which the Assessee must have acquired a right to receive the payment. The balance amount will accrue to Assessee on completion of contract as per its terms and conditions. The contention of the Revenue that on matching principle the amount of expenditure incurred in respect of the machinery work has been debited in the Profit Loss Account will not be of much help on the ground that in the subsequent year the entire amount has been subject to tax without any debit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -2008, passed by the Income Tax Appellate Tribunal, Delhi Bench 'G', New Delhi (hereinafter referred to as 'the ITAT') in ITA No. 4530/Delhi/2007, pertaining to the assessment year 2004-05. 2. In this case, the Assessee filed the return of income on 1-11-2004 declaring income of ₹ 26,17,888. The assessment was completed under Section 143(3) of the Act vide order dated 27-12-2006 at an income of ₹ 78,96,080, by making additions on certain accounts. Against the said order, the Assessee preferred an appeal before the Commissioner of Income Tax (Appeals), Faridabad [hereinafter referred to as 'the CIT(A)'], who vide his order dated 14-9-2007 partly allowed the appeal and deleted the additions of ₹ 51 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d position that the Assessee got a purchase order from M/s. SMS Demag (P.) Ltd., for supply of mash seam welder equipment to TISCO, Jamshedpur for a contract price of ₹ 3,89,66,720, inclusive of excise duty and sales tax. The said price was to be paid as per the Schedule-IV of the agreement. 5 per cent of the contract price for equipment supply was payable as advance payment within 30 days from the date of order of acceptance. 80 per cent was to be paid on the various prescriptions mentioned therein. The other 5 per cent was payable against output of first cold of acceptable quality after satisfactory completion of integrated cold test and other requirements. The remaining 10 per cent was payable after the issuance of provisional acce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e system of accounting and since he had booked the expenses of purchase of material and other manufacturing expenses in the Profit Loss on mercantile system of accounting and supplied the machinery to the buyer, therefore, he was bound to show the entire sale price of the machinery in the Profit Loss Account under the mercantile system of accounting in the assessment year under consideration. 7. The learned CIT(A), while deleting the said additions, has held that as per the terms of the contract, only 85 per cent of the amount was to be received by the Assessee till the supply of machinery in the assessment year under consideration and the remaining 15 per cent amount was payable to the Assessee, after issuance of provisional accepta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground that in the subsequent year the entire amount of ₹ 48,45,000 has been subject to tax without any debiting of the expenditure in profit and loss account. In the light of above discussion vide, the amount of ₹ 48,45,000 is not assessable in the year under consideration. The Assessee's case is also covered by the decision of Hon'ble Madras High Court in the case of Ignifluid Boilers (India) Ltd. (supra) . Accordingly, we do not find any infirmity in the order passed by Ld. CIT(A) deleting the addition. 9. After hearing learned Counsel for the Appellant-revenue and going through the impugned order, we do not find any ground to interfere in the aforesaid concurrent findings recorded by the learned CIT(A) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rate of 25 per cent. The electric installations are part of the transformers. Hon'ble jurisdictional High Court in the case of CIT v. Oswal Woollen Mills Ltd. 289 ITR 261 (Punj. Har.) has decided the issue in favour of the Assessee by holding that depreciation will be available on transformers. The learned CIT (Appeals) has elaborately discussed the issue relating to depreciation allowable on each item. In our considered opinion, the learned CIT (Appeals) is justified in allowing the depreciation on electric installations. Accordingly, we do not find any infirmity in the order passed by the learned CIT (Appeals). 11. After hearing learned Counsel for the Appellant-revenue and going through the impugned order, we do not find any gro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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