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“mercantile system of accounting”

ICDS & AccountingSection 145Section 1451,487 judgments

The decision most relied on for mercantile system of accounting is CIT v. Woodward Governor India Pvt. Ltd. (312 ITR 254), cited in 968 judgments on BharatTax.

Leading authorities on mercantile system of accounting

CIT v. Woodward Governor India Pvt. Ltd.
312 ITR 254 · 2009 · Supreme Court
968
citing judgments

Foreign exchange fluctuations, whether gains or losses, are inextricably linked to the underlying business transaction and must be accounted for under the mercantile system. The Supreme Court also affirmed the standard accounting principle of valuing stock at cost or net realisable value, whichever is lower.

CIT v. Excel Industries Ltd.
358 ITR 295 · 2013 · Supreme Court
935
citing judgments

When an income or expenditure is revenue neutral across different assessment years, where any benefit derived is offset by a corresponding liability or reversal, no additional tax liability arises, particularly concerning income recognition under the mercantile system of accounting.

Rotork Controls India Pvt. Ltd. v. CIT
314 ITR 62 · 2009 · Supreme Court
739
citing judgments

A provision for expenses, such as warranty, is a deductible liability for income tax purposes if it constitutes a present obligation arising from past events, and a reliable estimate of the amount of obligation is possible.

Kedarnath Jute Mfg. Co. Ltd. v. CIT
82 ITR 363 · 1971 · Supreme Court
654
citing judgments

Tax liability for an item of income or expenditure is determined solely by the provisions of the Income-tax Act. Entries in an assessee's books of account are not conclusive and do not govern the taxability or deductibility of an item, as the legal rights and obligations under the Act prevail.

Lalchand Bhagat Ambica Ram v. CIT
37 ITR 288 · 1959 · Supreme Court
570
citing judgments

Where an assessee maintains regular books of account, and these books are not rejected or found defective by the Assessing Officer, any cash deposits or available cash shown in the cash book, if sufficient to cover the transaction, cannot be treated as unexplained income or an addition under sections 68 or 69A.

Calcutta Co. Ltd. v. CIT
37 ITR 1 · 1959 · Supreme Court
341
citing judgments

When following the mercantile system of accounting, provisions for liabilities made on a scientific and rational basis are allowable as deductions, even if their actual quantification and discharge are deferred to a future date.

United Commercial Bank v. CIT
240 ITR 355 · 1999 · Supreme Court
314
citing judgments

Liabilities accrued on a notional basis are allowable as deductions under the mercantile system of accounting even if their exact quantification or discharge is deferred to a future date or if the demand itself is disputed.

M.M.Aqua Technologies Limited v. CIT
436 ITR 582 · 2021 · Supreme Court
308
citing judgments

Amendments to tax law that impose new obligations or change existing legal positions apply prospectively, even if stated to be "for the removal of doubts." The judgment also clarifies that deductions under Section 43B are allowed only on actual payment, overriding the mercantile system of accounting.

Judgments citing mercantile system of accounting

Sh.Chahat Kaushal, Mandi Gobindgarh vs. ITO Ward, Sirhid

In the result, appeal of the Assessee is partly allowed

ITA 341/CHANDI/2020[2015-16]Status: DisposedITAT Chandigarh27 Feb 2024AY 2015-16

Bench: SHRI. SANJAY GARG (Judicial Member), SHRI. VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Parikshit Aggarwal, CAFor Respondent: Smt. Amanpreet Kaur, Sr. DR
Section 143(2)

addition may be directed to be deleted. 8. Per contra, the Ld. DR submitted that the assessee is a contractor who was following mercantile system of accounting and has not accounted for the specific receipt while filing the return of income. It was further submitted that the assessee

Escorts Ltd., New Delhi vs. DCIT, New Delhi

In the result, the assessee’s appeal is partly allowed for statistical

ITA 792/DEL/2010[2006-07]Status: PendingITAT Delhi27 Feb 2024AY 2006-07

Bench: Shri Shamim Yahya & Shri Challa Nagendra Prasadm/S. Escorts Limited, Vs. Dcit, Central Circle 3, 11, Scindia House, New Delhi. Connaught Circus, New Delhi. (Pan : Aaace0074B) Dcit, Central Circle 3, Vs. M/S. Escorts Limited, New Delhi. 11, Scindia House, Connaught Circus, New Delhi.

For Appellant: Shri R.M. Mehta, CAFor Respondent: Shri T. James Singson, CIT DR

Interest of Rs.31,797/- and operating expenses of Rs.136601/-. Since these expenses pertain to earlier years and the assessee company had been following mercantile system of accounting, these expenses are hereby disallowed and added back to the total income of the assessee.” 11.1 AO further made addition of prior period ... since invoice is dated 1/10/2005, therefore, technically it cannot be said that it is prior period expenses. Since the assessee is following mercantile system of accounting, the expenses are to be acknowledged only on the receipt of invoice. Therefore, this expenditure of Rs.12,25,000/- is directed to be allowed

DCIT, New Delhi vs. M/S. Escorts Ltd., New Delhi

In the result, the assessee’s appeal is partly allowed for statistical

ITA 1313/DEL/2010[2006-07]Status: DisposedITAT Delhi27 Feb 2024AY 2006-07

Bench: Shri Shamim Yahya & Shri Challa Nagendra Prasadm/S. Escorts Limited, Vs. Dcit, Central Circle 3, 11, Scindia House, New Delhi. Connaught Circus, New Delhi. (Pan : Aaace0074B) Dcit, Central Circle 3, Vs. M/S. Escorts Limited, New Delhi. 11, Scindia House, Connaught Circus, New Delhi.

For Appellant: Shri R.M. Mehta, CAFor Respondent: Shri T. James Singson, CIT DR

Interest of Rs.31,797/- and operating expenses of Rs.136601/-. Since these expenses pertain to earlier years and the assessee company had been following mercantile system of accounting, these expenses are hereby disallowed and added back to the total income of the assessee.” 11.1 AO further made addition of prior period ... since invoice is dated 1/10/2005, therefore, technically it cannot be said that it is prior period expenses. Since the assessee is following mercantile system of accounting, the expenses are to be acknowledged only on the receipt of invoice. Therefore, this expenditure of Rs.12,25,000/- is directed to be allowed

S.P.Enterprises, Indore vs. The ACIT2(1), Indore

In the result, appeal of the assessee is partly allowed for statistical purposes

ITA 216/IND/2023[2016-17]Status: DisposedITAT Indore21 Feb 2024AY 2016-17

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanis.P. Enterprises Acit 2(1) Ug-9 Lokhandwala Complex Indore Gangali Square Ringh Road, Vs. Indore, Mp (Appellant / Assessee) (Respondent/ Revenue) Pan: Ackfs0827M Assessee By Ms. Nisha Lahoti & Shri Vijay Bansal Ars Revenue By Shri Ashish Porwal, Sr. Dr Date Of Hearing 07.02.2024 Date Of Pronouncement 21.02.2024

Section 143(3)Section 145

considered all such submissions including the ledger accounts of various parties and registries. The appellant has stated that it is consistently following mercantile system of accounting. The appellant is contending that no adverse view was taken on purchase, sale of opening stock then why closing stock is doubted and further

M/S. Mahima Fibres Private Limited, Indore vs. The PCIT-1, Indore

In the result, appeal of the assessee is dismissed

ITA 163/IND/2023[2018-19]Status: DisposedITAT Indore21 Feb 2024AY 2018-19

Bench: Shri Vijay Pal Rao & Shri B.M. Biyanimahima Fibres Private Ltd. Pr. Cit, 406, Corporate House, Rnt Indore -1 Marg Vs. Indore -452001 (Appellant / Assessee) (Respondent/ Revenue) Pan: Aaccm4603N Assessee By Shri Manoj Gupta & Pankaj Shah Ars Revenue By Ms. Simran Bhullar, Cit-Dr Date Of Hearing 10.01.2024 Date Of Pronouncement 21.02.2024

Section 142(1)Section 143Section 143(3)Section 263

that the assessee company had claimed Drawback of Rs.17,56,15,262/- and the same amount was sanctioned. Since the assessee was following mercantile system of accounting, the entire amount of Rs.17,56,15,262/- was to be treated in F.Y 2017-18 instead of Rs.1

Electronics Corporation of Tamilnadu Ltd., Chennai vs. DCIT Corporate Circle 2(1), Chennai

In the result, appeal filed by the assessee for assessment year 2013-14 is partly allowed for statistical purposes

ITA 2437/CHNY/2017[2013-14]Status: DisposedITAT Chennai21 Feb 2024AY 2013-14

Bench: Shri Manjunatha. G, Hon’Ble & Shri Manomohan Das, Hon’Bleआयकरअपीलसं./Ita Nos.: 2431, 2432, 2433, 2434, 2435, 2436 & 2437/Chny/2017 िनधा"रणवष" / Assessment Years: 2006-07, 2006-07, 2007-08, 2008-09, 2011-12, 2012-13 & 2013-14 M/S. Electronics Corporation Of The Deputy Commissioner Of Tamilnadu Ltd., V. Income Tax, No. 692, Mhu Complex, Corporate Circle -2(1), Anna Salai, Nandanam, Chennai. Chennai – 600 035. [Pan: Aaace-1670-K] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. S. Sridhar, Advocate अपीलाथ"क"ओरसे/Appellant By ""यथ"क"ओरसे/Respondent By : Shri. P. Sajit Kumar, Jcit सुनवाई क" तारीख/Date Of Hearing : 04.01.2024 घोषणा क" तारीख/Date Of Pronouncement : 21.02.2024

For Respondent: Shri. P. Sajit Kumar, JCIT
Section 143(3)Section 14A

Officer, however was not convinced with the explanation furnished by the assessee and according to the Assessing Officer, when the assessee is following mercantile system of accounting, income and expenditure relatable to particular assessment year should be recognized on accrual basis. Since, income relating to the sale of Farmers Security ... made by the Assessing Officer. 12.1 The ld. Counsel for the assessee submitted that, even in a case where the assessee is following mercantile systems of accounting, income accrues only when the assessee sells the cards to farmers. Although, the appellant has printed farmers security cards, the sale has been

Electronics Corporation of Tamilnadu Ltd., Chennai vs. DCIT Corporate Circle 2(1), Chennai

In the result, appeal filed by the assessee for assessment year 2013-14 is partly allowed for statistical purposes

ITA 2436/CHNY/2017[2012-13]Status: DisposedITAT Chennai21 Feb 2024AY 2012-13

Bench: Shri Manjunatha. G, Hon’Ble & Shri Manomohan Das, Hon’Bleआयकरअपीलसं./Ita Nos.: 2431, 2432, 2433, 2434, 2435, 2436 & 2437/Chny/2017 िनधा"रणवष" / Assessment Years: 2006-07, 2006-07, 2007-08, 2008-09, 2011-12, 2012-13 & 2013-14 M/S. Electronics Corporation Of The Deputy Commissioner Of Tamilnadu Ltd., V. Income Tax, No. 692, Mhu Complex, Corporate Circle -2(1), Anna Salai, Nandanam, Chennai. Chennai – 600 035. [Pan: Aaace-1670-K] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. S. Sridhar, Advocate अपीलाथ"क"ओरसे/Appellant By ""यथ"क"ओरसे/Respondent By : Shri. P. Sajit Kumar, Jcit सुनवाई क" तारीख/Date Of Hearing : 04.01.2024 घोषणा क" तारीख/Date Of Pronouncement : 21.02.2024

For Respondent: Shri. P. Sajit Kumar, JCIT
Section 143(3)Section 14A

Officer, however was not convinced with the explanation furnished by the assessee and according to the Assessing Officer, when the assessee is following mercantile system of accounting, income and expenditure relatable to particular assessment year should be recognized on accrual basis. Since, income relating to the sale of Farmers Security ... made by the Assessing Officer. 12.1 The ld. Counsel for the assessee submitted that, even in a case where the assessee is following mercantile systems of accounting, income accrues only when the assessee sells the cards to farmers. Although, the appellant has printed farmers security cards, the sale has been

Electronics Corporation of Tamilnadu Ltd., Chennai vs. DCIT Corporate Circle 2(1), Chennai

In the result, appeal filed by the assessee for assessment year 2013-14 is partly allowed for statistical purposes

ITA 2435/CHNY/2017[2011-12]Status: DisposedITAT Chennai21 Feb 2024AY 2011-12

Bench: Shri Manjunatha. G, Hon’Ble & Shri Manomohan Das, Hon’Bleआयकरअपीलसं./Ita Nos.: 2431, 2432, 2433, 2434, 2435, 2436 & 2437/Chny/2017 िनधा"रणवष" / Assessment Years: 2006-07, 2006-07, 2007-08, 2008-09, 2011-12, 2012-13 & 2013-14 M/S. Electronics Corporation Of The Deputy Commissioner Of Tamilnadu Ltd., V. Income Tax, No. 692, Mhu Complex, Corporate Circle -2(1), Anna Salai, Nandanam, Chennai. Chennai – 600 035. [Pan: Aaace-1670-K] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. S. Sridhar, Advocate अपीलाथ"क"ओरसे/Appellant By ""यथ"क"ओरसे/Respondent By : Shri. P. Sajit Kumar, Jcit सुनवाई क" तारीख/Date Of Hearing : 04.01.2024 घोषणा क" तारीख/Date Of Pronouncement : 21.02.2024

For Respondent: Shri. P. Sajit Kumar, JCIT
Section 143(3)Section 14A

Officer, however was not convinced with the explanation furnished by the assessee and according to the Assessing Officer, when the assessee is following mercantile system of accounting, income and expenditure relatable to particular assessment year should be recognized on accrual basis. Since, income relating to the sale of Farmers Security ... made by the Assessing Officer. 12.1 The ld. Counsel for the assessee submitted that, even in a case where the assessee is following mercantile systems of accounting, income accrues only when the assessee sells the cards to farmers. Although, the appellant has printed farmers security cards, the sale has been

Electronics Corporation of Tamilnadu Ltd., Chennai vs. DCIT Corporate Circle 2(1), Chennai

In the result, appeal filed by the assessee for assessment year 2013-14 is partly allowed for statistical purposes

ITA 2434/CHNY/2017[2008-09]Status: DisposedITAT Chennai21 Feb 2024AY 2008-09

Bench: Shri Manjunatha. G, Hon’Ble & Shri Manomohan Das, Hon’Bleआयकरअपीलसं./Ita Nos.: 2431, 2432, 2433, 2434, 2435, 2436 & 2437/Chny/2017 िनधा"रणवष" / Assessment Years: 2006-07, 2006-07, 2007-08, 2008-09, 2011-12, 2012-13 & 2013-14 M/S. Electronics Corporation Of The Deputy Commissioner Of Tamilnadu Ltd., V. Income Tax, No. 692, Mhu Complex, Corporate Circle -2(1), Anna Salai, Nandanam, Chennai. Chennai – 600 035. [Pan: Aaace-1670-K] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. S. Sridhar, Advocate अपीलाथ"क"ओरसे/Appellant By ""यथ"क"ओरसे/Respondent By : Shri. P. Sajit Kumar, Jcit सुनवाई क" तारीख/Date Of Hearing : 04.01.2024 घोषणा क" तारीख/Date Of Pronouncement : 21.02.2024

For Respondent: Shri. P. Sajit Kumar, JCIT
Section 143(3)Section 14A

Officer, however was not convinced with the explanation furnished by the assessee and according to the Assessing Officer, when the assessee is following mercantile system of accounting, income and expenditure relatable to particular assessment year should be recognized on accrual basis. Since, income relating to the sale of Farmers Security ... made by the Assessing Officer. 12.1 The ld. Counsel for the assessee submitted that, even in a case where the assessee is following mercantile systems of accounting, income accrues only when the assessee sells the cards to farmers. Although, the appellant has printed farmers security cards, the sale has been

Electronics Corporation of Tamilnadu Ltd., Chennai vs. DCIT Corporate Circle 2(1), Chennai

In the result, appeal filed by the assessee for assessment year 2013-14 is partly allowed for statistical purposes

ITA 2433/CHNY/2017[2007-08]Status: DisposedITAT Chennai21 Feb 2024AY 2007-08

Bench: Shri Manjunatha. G, Hon’Ble & Shri Manomohan Das, Hon’Bleआयकरअपीलसं./Ita Nos.: 2431, 2432, 2433, 2434, 2435, 2436 & 2437/Chny/2017 िनधा"रणवष" / Assessment Years: 2006-07, 2006-07, 2007-08, 2008-09, 2011-12, 2012-13 & 2013-14 M/S. Electronics Corporation Of The Deputy Commissioner Of Tamilnadu Ltd., V. Income Tax, No. 692, Mhu Complex, Corporate Circle -2(1), Anna Salai, Nandanam, Chennai. Chennai – 600 035. [Pan: Aaace-1670-K] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. S. Sridhar, Advocate अपीलाथ"क"ओरसे/Appellant By ""यथ"क"ओरसे/Respondent By : Shri. P. Sajit Kumar, Jcit सुनवाई क" तारीख/Date Of Hearing : 04.01.2024 घोषणा क" तारीख/Date Of Pronouncement : 21.02.2024

For Respondent: Shri. P. Sajit Kumar, JCIT
Section 143(3)Section 14A

Officer, however was not convinced with the explanation furnished by the assessee and according to the Assessing Officer, when the assessee is following mercantile system of accounting, income and expenditure relatable to particular assessment year should be recognized on accrual basis. Since, income relating to the sale of Farmers Security ... made by the Assessing Officer. 12.1 The ld. Counsel for the assessee submitted that, even in a case where the assessee is following mercantile systems of accounting, income accrues only when the assessee sells the cards to farmers. Although, the appellant has printed farmers security cards, the sale has been

Electronics Corporation of Tamilnadu Ltd., Chennai vs. DCIT Corporate Circle 2(1), Chennai

In the result, appeal filed by the assessee for assessment year 2013-14 is partly allowed for statistical purposes

ITA 2432/CHNY/2017[2006-07]Status: DisposedITAT Chennai21 Feb 2024AY 2006-07

Bench: Shri Manjunatha. G, Hon’Ble & Shri Manomohan Das, Hon’Bleआयकरअपीलसं./Ita Nos.: 2431, 2432, 2433, 2434, 2435, 2436 & 2437/Chny/2017 िनधा"रणवष" / Assessment Years: 2006-07, 2006-07, 2007-08, 2008-09, 2011-12, 2012-13 & 2013-14 M/S. Electronics Corporation Of The Deputy Commissioner Of Tamilnadu Ltd., V. Income Tax, No. 692, Mhu Complex, Corporate Circle -2(1), Anna Salai, Nandanam, Chennai. Chennai – 600 035. [Pan: Aaace-1670-K] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. S. Sridhar, Advocate अपीलाथ"क"ओरसे/Appellant By ""यथ"क"ओरसे/Respondent By : Shri. P. Sajit Kumar, Jcit सुनवाई क" तारीख/Date Of Hearing : 04.01.2024 घोषणा क" तारीख/Date Of Pronouncement : 21.02.2024

For Respondent: Shri. P. Sajit Kumar, JCIT
Section 143(3)Section 14A

Officer, however was not convinced with the explanation furnished by the assessee and according to the Assessing Officer, when the assessee is following mercantile system of accounting, income and expenditure relatable to particular assessment year should be recognized on accrual basis. Since, income relating to the sale of Farmers Security ... made by the Assessing Officer. 12.1 The ld. Counsel for the assessee submitted that, even in a case where the assessee is following mercantile systems of accounting, income accrues only when the assessee sells the cards to farmers. Although, the appellant has printed farmers security cards, the sale has been

M/S Electronics Corporation of Tamilnadu Ltd, Nandanam vs. DCIT Corporate Circle - 2 [1], Chennai

In the result, appeal filed by the assessee for assessment year 2013-14 is partly allowed for statistical purposes

ITA 2431/CHNY/2017[2006-07]Status: DisposedITAT Chennai21 Feb 2024AY 2006-07

Bench: Shri Manjunatha. G, Hon’Ble & Shri Manomohan Das, Hon’Bleआयकरअपीलसं./Ita Nos.: 2431, 2432, 2433, 2434, 2435, 2436 & 2437/Chny/2017 िनधा"रणवष" / Assessment Years: 2006-07, 2006-07, 2007-08, 2008-09, 2011-12, 2012-13 & 2013-14 M/S. Electronics Corporation Of The Deputy Commissioner Of Tamilnadu Ltd., V. Income Tax, No. 692, Mhu Complex, Corporate Circle -2(1), Anna Salai, Nandanam, Chennai. Chennai – 600 035. [Pan: Aaace-1670-K] (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shri. S. Sridhar, Advocate अपीलाथ"क"ओरसे/Appellant By ""यथ"क"ओरसे/Respondent By : Shri. P. Sajit Kumar, Jcit सुनवाई क" तारीख/Date Of Hearing : 04.01.2024 घोषणा क" तारीख/Date Of Pronouncement : 21.02.2024

For Respondent: Shri. P. Sajit Kumar, JCIT
Section 143(3)Section 14A

Officer, however was not convinced with the explanation furnished by the assessee and according to the Assessing Officer, when the assessee is following mercantile system of accounting, income and expenditure relatable to particular assessment year should be recognized on accrual basis. Since, income relating to the sale of Farmers Security ... made by the Assessing Officer. 12.1 The ld. Counsel for the assessee submitted that, even in a case where the assessee is following mercantile systems of accounting, income accrues only when the assessee sells the cards to farmers. Although, the appellant has printed farmers security cards, the sale has been

DCIT, Central Circle, Ghaziabad vs. Pks Infra Engineers Private Limited, New Delhi

In the result, the appeal of the revenue is dismissed

ITA 1388/DEL/2022[2017-18]Status: DisposedITAT Delhi20 Feb 2024AY 2017-18

Bench: Shri M. Balaganesh & Ms Astha Chandradcit, Vs. Pks Infra Engineers Pvt. Ltd, Central Circle, J-288, Saket, New Delhi Ghaziabad (Appellant) (Respondent) Pan: Aaecp6740M Assessee By : Shri Sanjeev Jain, Ca Revenue By: Ms. Harpreet Kaur, Sr. Dr Date Of Hearing 22/11/2023 Date Of Pronouncement 20/02/2024

For Appellant: Shri Sanjeev Jain, CAFor Respondent: Ms. Harpreet Kaur, Sr. DR
Section 143(3)Section 145(3)

central govt and hence, it cannot be treated as revenue of the assessee. It was clarified that the assessee has been following only mercantile system of accounting. It was also clarified that all the payers are govt parties and some parties deducted TDS on bills including service tax portion ... Planning Division, Banda, the assessee submitted that Rs. 20 lakhs had already been accounted by it in AY 2016-17 by following mercantile system of accounting, whereas, the payer had considered the same as their expenditure only in AY 2017-18. This aspect was duly examined

Shri Praveen Gupta, Gurgaon vs. ACIT, Meerut

In the result, the appeal of the assessee is dismissed

ITA 3189/DEL/2017[2012-13]Status: DisposedITAT Delhi15 Feb 2024AY 2012-13

Bench: Shri Amit Shukla & Shri M. Balaganeshshri Praveen Gupta, Vs. Acit, D-101, First Floor, Tower Circle-2, No. D, Caitriona Meerut Residential Apartment Complex, Ambience Island, Gurgoan-22001 (Appellant) (Respondent) Pan: Acjpg4777H Assessee By : None Revenue By: Shri Vivek Vardha, Sr. Dr Date Of Hearing 12/02/2024 Date Of Pronouncement 15/02/2024

For Appellant: NoneFor Respondent: Shri Vivek Vardha, Sr. DR
Section 143(3)Section 37Section 68

payable to 84 persons of Rs. 1,34,00,000/- have been made during the year under consideration as the assessee is following mercantile system of accounting. That, the compensation as provided in the books of accounts is allowable u/s 37 of IT Act, 1961. Here it is also submitted

DCIT, New Delhi vs. M/S. Ntpc Ltd., New Delhi

ITA 6982/DEL/2014[2007-08]Status: HeardITAT Delhi14 Feb 2024AY 2007-08

Bench: Sh. N. K. Billaiya & Sh. Kul Bharatassessment Year: 2007-08 Dcit Vs. Ntpc Ltd. Circle – 18(2) Ntpc Bhawan Core-7 New Delhi Scope Complex Lodhi Road, New Delhi-110003 Pan No.Aaacn0255D (Appellant) (Respondent) Appellant By Sh. Subhra Jyoti Chakrabotry, Cit Dr Respondent By Sh. Ved Jain, Advocate Ms. Supriya Mehta, Ca Date Of Hearing: 12/02/2024 Date Of Pronouncement: 14/02/2024 Order

Section 143Section 147Section 148

only (after adjusting prior period expenses) instead of Rs. 20,50,00,000/-. As the assessee was following mercantile system of accounting, any income, which is received or deemed to be received, or which accrues during the previous year was to be added back to the income of the assessee

DCIT Central Circle, Karnal vs. Reliable Realtech Pvt Ltd, Bhiwani

In the result, appeal of the Revenue is dismissed

ITA 4808/DEL/2019[2014-15]Status: DisposedITAT Delhi09 Feb 2024AY 2014-15

Bench: Shri M Balaganesh & Ms. Astha Chandraasstt. Year: 2014-15 Dcit, Central Circle, Vs. Reliable Realtech Pvt. Ltd. Ayakar Bhawan, C/O Nk Jain Adv. Sec-12, Karnal, Naya Bazar, Bhiwani Haryana Pin 132001 Haryana Pin 127021 Pan Aadcr4203L (Appellant) (Respondent)

For Appellant: Shri Gautam Jain, AdvocateFor Respondent: Shri P.N. Barnwal, CIT DR
Section 132Section 132(4)Section 143(3)Section 153A

that the income chargeable under the heads 'Profits and gains of business or profession' shall be computed in accordance with either cash or mercantile system of accounting "regularly employed by the Assessee". It is only with effect from 1st April 2015 that a change has been brought about in Section ... profession" or "Income from other sources shall subject to the provisions of sub- section (2), be computed in accordance with either cash or mercantile system of accounting regularly employed by the assessee. (2) The Central Government may notify in the Official Gazette from time to time accounting standards

Ntt Global Data Centers & Cloud Infrastructure India Private Limited (Erstwhile Netmagic It Services Private Limited), Mumbai vs. DCIT-10 (3)(1), Mumbai

In the result the issue under consideration is remitted back to the file of Assessing Officer for statistical purpose

ITA 2784/MUM/2023[2015-16]Status: DisposedITAT Mumbai07 Feb 2024AY 2015-16

Bench: Shri Aby T Varkey, Hon'Ble & Shri S. Rifaur Rahman, Hon'Blentt Global Data Centers & Cloud V. National E-Assessment Centre Infrastructure India Private Limited {Now Known As National {Erstwhile Netmagic It Services Faceless Appeal Centre} Private Limited} Delhi 7Th Floor, Hiranandani Business Park Sakinaka S.O., Mumbai - 400072 Pan: Aaccn2366D (Appellant) (Respondent) Assessee Represented By : Shri Vijay Mehta, Shri Arpit Doshi & Ms. Payal Mehta Department Represented By : Shri S. Srinivasu

Section 37(1)

invoices are also dated in the year under consideration. 2.2 The CIT(A) ought to have appreciated that the Appellant is following the mercantile system of accounting and as per mercantile system of accounting all the expenses relating to earning of revenues for the stipulated period should be booked ... allow provisional expenses or provisions. Being a company entity, as per the provisions the assessee is required and it is following is Mercantile System of Accounting. As per the Mercantile System of Accounting, as per the Matching Principle one should record all expenses related to a revenue- generating transaction

Maharashtra State Electricity Distribution Company Ltd, Mumbai vs. DCIT 14(2)(1), Mumbai

In the result, appeal of Revenue is dismissed

ITA 3383/MUM/2019[2014-15]Status: DisposedITAT Mumbai07 Feb 2024AY 2014-15

Bench: Shri Vikas Awasthy& Shri Amarjit Singhआअसं.3383/मुं/2019 (िन.व. 2014-15) Maharastra State Electricity Distribution Co. Ltd., ‘Prakashgad’ 2Nd Floor, Anant Kanekar Marg, Bandra(East), Mumbai 400 051 Pan: Aaecm-2933-K ...... अपीलाथ"/Appellant बनाम Vs. Dy. Commissioner Of Income-Tax-14(2)(1), Room No.432, 4Th Floor, Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ..... "ितवादी/Respondent आअसं.2635/मुं/2019 (िन.व. 2014-15) Dy. Commissioner Of Income-Tax-14(2)(1), Room No.432, 4Th Floor, Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ...... अपीलाथ"/Appellant बनाम Vs. Maharastra State Electricity Distribution Co. Ltd., ‘Prakashgad’ 2Nd Floor, Anant Kanekar Marg, Bandra(East), Mumbai 400 051 ..... "ितवादी/Respondent Pan: Aaecm-2933-K Assessee By : Shri J.D.Mistry, Sr.Advocate With Shri Niraj Sheth Revenue By : Smt.Sanyogita Nagpal, Cit-Dr सुनवाई क" ितिथ/ Date Of Hearing : 30/11/2023 घोषणा क" ितिथ/ Date Of Pronouncement : 07/02/2024

For Appellant: Shri J.D.Mistry, Sr.Advocate with Shri Niraj ShethFor Respondent: Smt.Sanyogita Nagpal, CIT-DR

emphasize that prior period expenditure which are crystallized during the relevant Assessment Year on receipt of bills even though the assessee was following mercantile system of accounting can be allowed since the assessee is following consistent method of accounting in recording of such transactions. 4. In respect of ground No.2

DCIT-14(2)(1), Mumbai vs. M/S Maharasthra State Electricity Distribution Co. Ltd., Mumbai

In the result, appeal of Revenue is dismissed

ITA 2635/MUM/2019[2014-15]Status: DisposedITAT Mumbai07 Feb 2024AY 2014-15

Bench: Shri Vikas Awasthy& Shri Amarjit Singhआअसं.3383/मुं/2019 (िन.व. 2014-15) Maharastra State Electricity Distribution Co. Ltd., ‘Prakashgad’ 2Nd Floor, Anant Kanekar Marg, Bandra(East), Mumbai 400 051 Pan: Aaecm-2933-K ...... अपीलाथ"/Appellant बनाम Vs. Dy. Commissioner Of Income-Tax-14(2)(1), Room No.432, 4Th Floor, Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ..... "ितवादी/Respondent आअसं.2635/मुं/2019 (िन.व. 2014-15) Dy. Commissioner Of Income-Tax-14(2)(1), Room No.432, 4Th Floor, Aaykar Bhavan, M.K.Road, Mumbai – 400 020 ...... अपीलाथ"/Appellant बनाम Vs. Maharastra State Electricity Distribution Co. Ltd., ‘Prakashgad’ 2Nd Floor, Anant Kanekar Marg, Bandra(East), Mumbai 400 051 ..... "ितवादी/Respondent Pan: Aaecm-2933-K Assessee By : Shri J.D.Mistry, Sr.Advocate With Shri Niraj Sheth Revenue By : Smt.Sanyogita Nagpal, Cit-Dr सुनवाई क" ितिथ/ Date Of Hearing : 30/11/2023 घोषणा क" ितिथ/ Date Of Pronouncement : 07/02/2024

For Appellant: Shri J.D.Mistry, Sr.Advocate with Shri Niraj ShethFor Respondent: Smt.Sanyogita Nagpal, CIT-DR

emphasize that prior period expenditure which are crystallized during the relevant Assessment Year on receipt of bills even though the assessee was following mercantile system of accounting can be allowed since the assessee is following consistent method of accounting in recording of such transactions. 4. In respect of ground No.2

DCIT, New Delhi vs. Carissa Investment Pvt. Ltd., Delhi

In the result, the appeal of the Revenue is dismissed

ITA 1648/DEL/2021[2013-14]Status: DisposedITAT Delhi07 Feb 2024AY 2013-14

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Mayank Patwari, CAFor Respondent: Ms. Sapna Bhatia, CIT-DR
Section 14A

into account while computing the assessable income in the previous years, as evidenced from the ledgers submitted by the appellant. In case of mercantile system of accounting, income is taxable on accrual basis, even if it is not realized in cash in the year of accrual of income. If debt