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TMI Blog2017 (5) TMI 1642X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the ITAT was of the opinion that CIT(A) in principle has rightly accepted the mode of revenue recognition by the assessee in those Assessment Year. - Decided against revenue. - I.T.A .No.3926/DEL/2014 - - - Dated:- 23-5-2017 - Shri R. K. Panda And Ms Suchitra Kamble, JJ. Appellant by Sh. N.K. Bansal, Sr. DR Respondent by Sh. Alok Vasant, Adv ORDER Suchitra Kamble, This appeal is filed by the Revenue against the order dated 24/4/2014 passed by CIT(A)-XI, New Delhi. 2. The grounds of appeal are as follows:- 1. On the facts and in the circumstances of the case, the Ld.CIT(A) has erred in deleting the addition of ₹ 7,65,19,216/- on account of unaccrued revenue as on 31/3/2009 from the sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9,256/- Add: Unacrued revenue as on 31/3/2008 1,75,38,049/- Less: Unaccrued revenue as on 31/3/2009 (7,65,19,216/-) Service Tax Amount 5,02,43,402/- Revenue as per P L 41,39,22,205/- 40,69,67,674/- 64,99,256/- The Ld. AR further pointed out that the Assessing Officer added un-accrued revenue as on 31.03.09 of ₹ 7,65,19,216/- alleging that the same ought to be recognized as revenue by placing reliance on his predecessor s orders. The Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment Year. The relevant extracts from the order of Tribunal for A.Y. 2004-05 2006-07 is reproduced below: para 14 ...assessee had installed integrated software for billing and accounting purpose. According to this system the revenue in respect of services that had been provided in the form of talk time to the subscribers was automatically recognised in the accounts both in respect of prepaid and postpaid cards. Further it is not disputed that the prepaid cards sold by the assessee had two parts, one fixed amount known as activation charge and second talk time charge. The activation charge was accounted for immediately when the phone was activated. However, the talk time charges were recognised on the basis of actual use which is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble as at the end of the year. As noted earlier, there is no dispute that company had to provide talk time to its subscriber till the expiry of the period of card or till complete utilisation of talk time, whichever is earlier. As long as assessee company is under obligation to provide talk time, it cannot be said that a debt has accrued in favour of assessee company against the subscriber. The assessee company cannot appropriate the charges relating to available talk time to the exclusion of subscriber as long as it is under obligation to provide the said services. Therefore, we are of the opinion that Learned CIT(A) in principle has rightly accepted the mode of revenue recognition by the assessee. .. In the present appeal also the same ..... X X X X Extracts X X X X X X X X Extracts X X X X
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