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TMI Blog2019 (5) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Kislaya Parashar, Advocates. O R D E R CM 13240/2019 (delay) 1. For the reasons explained in the application, the delay in re-filing the appeal is condoned and the application is allowed. ITA 267/2019 2.The Revenue is in appeal against an order dated 17th November, 2017 passed by the Income Tax Appellate Tribunal ('ITAT') in ITA No.6477/Del./2014 for the Assessment Year ('AY') 2010-11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se the income on accrual basis and could not postpone the revenue in view of the services already provided by it. According to the AO, the policy renewal date gave the Assessee the right to earn commission income on renewal of such policy. 5. When the matter travelled in appeal before the CIT (A), reference was made to the financial policy adopted by the Assessee in respect of 'revenue recogniti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the AY in question was Rs. 1,64,43,940/- which was related to the payment of renewal premium. On the other hand, the Revenue placed reliance on Accounting Standard-9 ('AS-9'), which reads as under: "B. Rendering of Services 2. Advertising and insurance agency commissions Revenue should be recognised when the service is completed. For advertising agencies, media commissions will normally be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the finding of the AO that assessee has failed to reconcile the difference of Rs. 2,84,70,114/- (44914054 - 16443940), therefore, the AO is directed to examine the account of Rs. 4.49 crores and verify whether premium in respect of all the policies appearing therein are paid by the policy holders in F.Y. 2010-11 and in subsequent period. If so, no addition is called for. Since the amount of Rs. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be accrued and due and payable in the next financial years only cannot be taxed in the year under assessment". 9. Additionally, it is pointed out by Mr Ved Jain, learned counsel appearing for the Assessee on advance notice, that the change adopted by the Assessee in the method of accounting, has been accepted by the Revenue for the four subsequent AYs, which were all scrutiny assessments. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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