Revenue appeal challenging a Tribunal order on taxation of customer advances. The Court noted an identical question in an earlier appeal was conceded by the Revenue as covered against it by the Supreme Court's judgment in Taparia Tools. Following that decision, the Court dismissed the instant appeal.
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THE PR. COMMISSIONER OF INCOME TAX-9
..... Appellant
Through: Mr. Shlok Chandra, Sr. SC with Ms. Madhavi Shukla and Ms. Priya Sarkar, Jr.SCs along with Mr. Ujjwal Jain, Adv.
versus
THYSSENKRUPP ELEVATOR (INDIA) PVT. LTD.
..... Respondent
Through: Mr. Rajan Bhatia, Adv.
CORAM:
HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV
O R D E R % 12.02.2024
“A Whether the ITAT has erred in ignoring the fact that the amount received as advance from the customers by the assessee had been shown in the Balance Sheet of the assessee as a liability without routing it through Profit
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/12/2024 at 16:40:51
and Loss Account which is not permissible under the accrual/mercantile system of accounting as prescribed under the Companies Act, 2013?”
“1. This appeal concerns Assessment Year (AY) 2005-06.
“i) Whether on the facts and circumstances of the case and in law, the Ld. Tribunal was right in deleting the addition made by the Assessing Officer on account of advance from customers failing to note and appreciate that these amounts constituted income liable to be taxed in the assessment year under consideration?
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/12/2024 at 16:40:51
YASHWANT VARMA, J.
PURUSHAINDRA KUMAR KAURAV, J.
FEBRUARY 12, 2024/p
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 16/12/2024 at 16:40:51
1 issue framed by the court
Whether the Tribunal erred in treating advance amounts from customers shown as a balance sheet liability as taxable income under accrual accounting?
Colour shows how this judgement treated each authority
Taparia Tools Ltd. vs. Joint Commissioner of Income TaxRelied on¶2
[2015 SCC OnLine SC 729] · Who else cites this
The Pr. Commissioner of Income Tax-9
Thyssenkrupp Elevator (India) Pvt. Ltd.
Yashwant Varma
Purushaindra Kumar Kaurav
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
