9911796707
TMI Blog2023 (10) TMI 134X X X X Extracts X X X X X X X X Extracts X X X X ..... spute regarding the preparation of the financial statement by the assessee as per AS-9, wherein the assessee offered to tax the income to the extent of project completed and the balance amount was considered as advance, we are of the considered view that the learned CIT(A) correctly directed the AO to delete the addition which was declared as advance by the assessee in the year under consideration and offered to tax in the subsequent year on the basis of project completion. We also do not find any infirmity in the directions of the learned CIT(A) to restrict the credit of TDS only with respect to the income of Rs. 9,79,79,884 for the assessment year 2008-09 and the balance excess claim for TDS be allowed in the subsequent years in which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Contract Charges received as advance? 2. Whether the Ld.CIT(A) has erred in revenue recognition in the facts and circumstances of the case, when entire Tax Deducted as Source (TDS) corresponding to the contractual receipts has been claimed by the Assessee? 3. The appellant craves leave to add, amend, vary, omit or substitute any of the aforesaid grounds of appeal at any time before or at the time of hearing of appeal. 4. The appellant prays that the order of CIT(A) on the above grounds be set- aside and that of the assessing officer be restored. 4. The only dispute raised by the Revenue, in the present appeal, is against the deletion of addition made on the basis of entries in the books of accounts of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted by the assessee, the AO vide order dated 20/12/2011 passed under section 143(3)(iii) read with section 147 of the Act noted that the assessee has recognised the revenue of Rs. 9,85,88,663, while the credit for tax deducted at source of Rs. 27,32,540 was claimed for the whole amount received by the assessee during the year. Accordingly, in light of the provisions of section 199 of the Act, the AO disallowed proportionate TDS credit of Rs. 4,98,520, since credit for TDS shall be allowable only in the year in which the income is assessable. The AO further held that the assessee is free to claim the said credit in the year in which the corresponding income has been offered to tax. Accordingly, the AO vide aforesaid order, assessed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 2009-10 and/or assessment year 2010-11 after due verification of receipt/income. Being aggrieved, the Revenue is in appeal before us. 7. We have considered the submissions of the learned Departmental Representative and perused the material available on record. In the present case, it is undisputed that the assessee has followed the Accounting Standards-9 for the preparation of its financial statements. Accordingly, the assessee has accounted for the revenue of Rs. 9,79,79,884 on the basis of proportionate completion of service. The balance amount of Rs. 2,26,08,779 was treated as advance from the customer in the year of receipt and was offered to tax in the succeeding year. Since in the year under consideration, the assessee recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered view that the learned CIT(A) correctly directed the AO to delete the addition of Rs. 2,20,68,779, which was declared as advance by the assessee in the year under consideration and offered to tax in the subsequent year on the basis of project completion. We also do not find any infirmity in the directions of the learned CIT(A) to restrict the credit of TDS only with respect to the income of Rs. 9,79,79,884 for the assessment year 2008-09 and the balance excess claim for TDS be allowed in the subsequent years in which the income has been offered to tax as per the consistent accounting practice followed by the assessee. Accordingly, the impugned order passed by the learned CIT(A) is upheld and the grounds raised by the Revenue are dismis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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