Held that liability to pay octroi expenses pertaining to financial years 2011-12 and 2012-13,crystallizing during year paid before filing of return. Allowable as deduction. Amortization of only part payment in profit and loss account. Addition made after reducing part payment accounted for is proper.Sales return policy accounted based on sound accounting principles. Deletion of addition by Commissioner (Appeals) is proper. (AY.2014-15)
Inditex Trent Retail India Pvt. Ltd. v. Add. CIT (2022)95 ITR 102 (Delhi)(Trib)
S. 145 : Method of accounting-Accrual of Liability-Octroi expenses-Accrual of income-Incentives-Amortization of only part payment in profit and loss account-Addition made after reducing part payment accounted for by assessee-Proper-Sales return policy accounted based on sound accounting principles. Deletion of addition by Commissioner (Appeals) is proper.