On appeal, the CIT(A) held that the amount of
Rs. 47,92,500 was billed by the Assessee in the subsequent year
i.e., AY 2008-09 and offered to tax by Assessee as well as assessed to tax by the AO in the said year. Since, the rate of tax on the income assessed was the same in both the years i.e., AY 2007-08 and
AY 2008-09, it was held that the interest of the Revenue will not be affected. Accordingly, the addition made by the Ld. CIT(A) was deleted. Order of Tribunal is affirmed by the Tribunal. Followed CIT v. Excel Industries Ltd ( 2013) 358 ITR 295 (SC) , CIT v. Nagri Mills Co. Ltd. (1958) 33 ITR 681 (Bom.)(HC), CIT v. Vishnu Industrial Gasses Pvt. Ltd. (Delhi ) (HC) ( ITA N0 229 of 1988 dt. 6-05-2008). (ITA Nos. 6787, 6489/Mum/2014, dt. 27-02-2019 (AY. 2007-08)
Deloitte Touche Tohmatsu India P. Ltd. v. DCIT (2019) 71 ITR 301/ 179 ITD 78 /( 2020) 196 DTR 349/ 208 TTJ 956(Mum.)(Trib.)
S. 143(3) : Assessment–Accrual of income-Year of taxability–Rate of tax-The income was offered in the subsequent year (basis the billing done), tax rate being the same, interest of revenue was not affected, therefore income could not be taxed on accrual basis in the current year. [S. 2(24), 5]