Case Law Details
DCIT Vs Enexio Power Cooling Solutions India Pvt. Ltd. (ITAT Chennai)
It could be seen that the nature of assessee’s work is such that a part of the contract amount is retained by the customers and the same is released on satisfactory performance of the project. Therefore, the assessee, following consistent method of accounting, defer the same and recognizes these revenues on receipts basis. So far as the expenditure is concerned, the same is claimed on accrual basis.
As rightly noted by Ld. CIT(A), this methodology has been approved by coordinate bench of Tribunal in assessee’s own case for earlier years. There is nothing on record to suggest that the aforesaid decisions have been reversed in any manner. No change in facts is before us in this year. Since Ld. CIT(A) has merely followed the adjudication of Tribunal, the same could not be faulted with. We order so.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
1. Aforesaid appeal by Revenue for Assessment Year (AY) 2017-18 arises out of the order of learned Commissioner of Income Tax (Appeals)-6, Chennai [CIT(A)] dated 23-03-2020 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 19-11-2019. The grounds taken by the Revenue read as under:
Please become a Premium member. If you are already a Premium member, login here to access the full content.
