The Tribunal held that the sales return policy of the company was in-built into the agreement or agreed by the assessee at the time of sales, that the obligation to accept sales returns arises on the date of sale. Thus, at the year end, i.e., in the month of March, the assessee was required to debit an amount towards provision for sales return to its profit and loss account against sales debited during the month of March for which the assessee takes actual sales from 1st April to 24th April which was after the balance-sheet date but before the finalisation of books of account and sales return for remaining 6 days was estimated on scientific/past experience basis. Following the practice of the first day of the next year provision, i.e., debit to profit and loss account was reversed to the profit and loss account of that year, and actual sales return was booked during the year. The sales return policy, as accounted for by the assessee, was based on sound accounting principles, and therefore, there was no reason to interfere with the findings of the Commissioner (Appeals). (AY.2014-15)