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TMI Blog2019 (9) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... that regard. - Decided against assessee. Deduction for royalties - HELD THAT:- As in assessee s own case for AY 2004-05 [ 2015 (11) TMI 995 - ITAT MUMBAI] assessee s contention that revenue on account of advance billing should be spread over for a period of time has been rejected by the AO which has been confirmed by the Tribunal also. Once that is so, then contention of the assessee that royalty which is payable on such advance billing in accordance with the agreement, should also consequently be allowed in this year only. The DRP has acknowledged this fact and has directed that if the assessee finally accepts the assessability of entire billing amount as revenue in the current year, then the assessee would be entitled for 30% deduction on account of royalty. Thus, AO is directed to allow the claim of deduction of royalty in this year in accordance with law Addition on account of alleged un-reconciled entries of Annual Information Report - AO finds that the assessee has not duly accounted for the above sum and offered it to tax whereas the assessee argues that it has been duly accounted for and offered to tax - HELD THAT:- The above factual matter needs verification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant materials on record, we find that the above issue is decided against the assessee by the order dated 07.10.2015 of the ITAT K Bench, Mumbai in assessee s own case for AY 2004-05 in ITA No. 8376/Mum/2011 and the same reads as under : v. The accrual of income must be real. What has really accrued to the assessee has to be found out and what has accrued must be considered from the point of view of real income taking the probability or improbability of realisation in a realistic manner. In the matter of S. K.G.Sugar Ltd.(96ITR194), the Hon'ble Patna High Court has laid down following general principles with regard to accrual of liability are: (1) In a mercantile system of accounting actual cash receipt of income is not necessary for the purpose of taxing a particular item as income; it is sufficient if the income has accrued during the period in question. Similarly, if the liability for a particular sum has been incurred during the accounting year and if otherwise the sum is allowable as a revenue expense then whether the sum has been actually paid or not is immaterial and the liability so incurred has got to be allowed as a revenue expense. (2) If, after the accr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wards the corresponding share of revenue, that the indeterminate event of providing of updates and services as and when the they were developed which had been in keeping with the industrial norm. The assessee had no right to postpone the revenue. Inspite of adequate opportunitie, the assessee had not filed any facts before the FAA or us, as stated earlier, in that regard. ln the case of Sify E-Learning Ltd.(supra),it was found that the assessee was following project completion method, whereas in the case under appeal the assessee had changed method of accounting deferring more than 75% of its revenue to future period perpetually. Such a change, in our opinion, is not a bona fide change. With regard to other cases relied upon we find that the FAA has thoroughly distinguished them and has given a finding that facts of the case under consideration are different from those cases. We agree with him. Therefore, we hold that the order of the F AA does not suffer from any legal or factual infirmity. Confirming, his order, we decide ground no.2.1.against the assessee. 2.3 Facts being identical, we follow the above order of the Co-ordinate Bench, and dismiss the ground No. 1.1 and 1.2 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to do so in respect of an amount of ₹ 14,31,988/-, details of which are as under : Txn date Filer name Amt. in Rs. Description 27.06.2006 Integrix (I) P. Ltd. 80000 Fee for professional/technical services 24.03.2007 Celerity Networks Pvt. Ltd. 67344 Fee for professional/technical services 29.01.2007 IQ Resource Pvt. Ltd. 12245 Contractor 29.03.2007 Secures Meters Ltd. 25869 -do- 31.03.2007 -do- 25869 -do- 12.01.2007 Vertex Customers Services India Pvt. Ltd. 113419 -do- 31.03.2007 Integrix (I) P Ltd. 968070 -do- 31.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CBDT vide Instruction No. 05/2013 dated 8th of July, 2013 has stated that:- 2. The Hon'ble Delhi High Court vide its judgement in the case 'Court On its Own Motion vs. U01 and Ors' (W.P. (C) 2659/2012 W.F. (C) 5443/2012 dated 14.03.2013) has issued seven mandamuses for necessary action by Income-tax Department, one of which is regarding the issue of non-credit of TDS to the taxpayer due to TDS mismatch despite the assesse furnishing before the assessing officer, TDS certificate issued by the deductor. 3. In view of the order of the Hon'ble Delhi High Court (reference: Para 50 of the order), it has been decided by the Board that when an assessee approaches the Assessing Officer with requisite details and particulars in the form of TDS certificate as an evidence against any mismatched amount, the said Assessing Officer will verify whether or not the deductor has made payment of the TDS in the Government Account and if the payment has been made, credit of the same should be given to the assessee. However, the Assessing Officer is at liberty to ascertain and verify the true and correct position about the TDS certificate. Such verification may be made with the re ..... 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