TP Adjustment - Assessee contents that part of the Revenue ...

Court Upholds Transfer Pricing Adjustment; Revenue Must Be Recognized When Accrued Under Mercantile Accounting System.

August 16, 2023

Case Laws     Income Tax     AT

TP Adjustment - Assessee contents that part of the Revenue reported in future years, but the contention of the assessee cannot be accepted for the simple reason that when the assessee is following mercantile system of accounting, Revenue should be recognized as and when income accrues and arises to the assessee, irrespective of the fact that the assessee has received the income or not. - there is no error in the reasons given by the AO/DRP to make additions towards billing in excess of Revenue - AT

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