S. 145A : Method of accounting-Contract receipts-Net of service tax-Exclusive method for accounting-Deduction not claimed-No disallowance can be made. [S. 43B, 145A(a)(ii)]
Ranvir Singh Vidhuri v. Dy. CIT (2022) 216 DTR 390 /218 TTJ 941 (Raipur)(Trib)
Digest of case laws
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This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
Click here to download the pdf versions of the Digest of case laws 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.
Inditex Trent Retail India Pvt. Ltd. v. Add. CIT (2022)95 ITR 102 (Delhi)(Trib)S. 145 : Method of accounting-Accrual of income-Entitled to receive cold storage charges only on preservation of potatoes in good, marketable condition up to that time-No accrual of cold storage charges over time or right to receive them in part performance of contract-Income for business cycle February to November did not accrue to assessee during February-March-No adjustment for contract period February to November to be made for year ending March-Direct input cost of provision of cold storage charges relating to February and March to be kept in abeyance to be claimed in following year.[S. 4, 5, 37 (1)]
A.K. Cold Storage Pvt. Ltd. v. ITO (2022)95 ITR 549 (Luck)(Trib)S. 145 : Method of accounting-Chit fund business-Accrual of income-Estimating the commission at five percent of gross chit collection is not proper-Matter remanded. [S. 5]
Gowrinath Chits Pvt. Ltd. v. ITO (2022) 95 ITR 9 (SN)(Bang) (Trib)S. 145 : Method of accounting-Real estate development business–Recognizing income at time of delivery of possession to customer-Applying the percentage method of accounting is not justified.
ACIT v. D. D. Resorts Pvt. Ltd. (2022)95 ITR 1 (SN(Delhi) (Trib)S. 145 : Method of accounting-Inventory write off-Failure to provide the evidence-Not allowable as deduction. [S. 28(i)]
Herbalife International India Pvt. Ltd. v. Dy. CIT (2022)100 ITR 456 (Bang) (Trib)S. 145 : Method of accounting-No defects in books of account-Estimation of GP was deleted-Forward dated bills duly accounted-Sufficient cash in hand-Deletion of addition is proper. [S.68, 145(3), 153A]
Roop Square P. Ltd. v. ACIT (2022) 99 ITR 451 (Chd)(Trib)S. 145 : Method of accounting-Work in progress-Notional valuation-Consolidating books of account-Addition is deleted.[S. 69]
HCC Samsung Joint Venture v. ACIT (2022) 220 DTR 105 / 220 TTJ 671 (Mum)(Trib)S. 145 : Method of accounting-Valuation of stock-Joint venture-Addition on account of construction work-Addition was deleted.
HCC Samsung Joint Venture v. ACIT (2022) 220 DTR 105/ 220 TTJ 631/ (2023) 148 taxmann.com 119 (Mum)(Trib)S. 145 : Method of accounting-Difference between contractual receipts according to Form 26AS and in books of assessee-Meagre difference-Addition was deleted. [S. 5]
Narendra Laxmansingh Solanki v. Dy. CIT (2022) 98 ITR 10 (SN) (Ahd.)(Trib.)