Delhi HC confirms ITAT
order holding that the amount received by assessee (engaged in providing basic
telecom services) on sale of prepaid cards to the extent of unutilized talk
time did not accrue as income in the year of sale i.e. AYs 2003-04, 2004-05
& 2009-10; Approves assessee’s mode of recognizing revenue on prepaid cards
on the basis of actual usage and carrying forward unutilized amount outstanding
on the prepaid cards to the next year in view of the matching principles for
revenue recognition as enshrined in the Accounting Standards, rejects Revenue’s
stand that assessee must account for the entire amount; However, HC states that
Revenue’s contention that the prepaid amount once paid and received by assessee
was forgone by the subscriber and accordingly appropriated by assessee is
substantially correct; At the same time, HC clarifies that “the payment was an
advance and was subject to the respondent-assessee providing basic telecom
service as promised, failing which the unutilized amount was required to be
refunded to the pre-paid subscribers” under the ordinary law of contract or
special enactments like the Consumer Protection Act; Lastly, HC rules that “unutilized
amount when the prepaid card lapses has to be treated as income or receipt of
the respondent-assessee on the date when the card had lapsed.”:HC
Subscribe to:
Post Comments (Atom)
ITAT Amendment Rules, 2025 – Key Procedural Changes and Practical Takeaways
The Income-tax Appellate Tribunal has recently notified the Income-tax (Appellate Tribunal) Amendment Rules, 2025, introducing important p...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
Section 68 -Cash credits Section 69 -Unexplained investments Section 69A - Unexplained money, etc Section 69B -Amount of investme...
-
In a landmark development that could have far-reaching implications for multinational groups operating in India, the Hon’ble Bombay High C...
-
An eminent concern within the GST framework pertains to the entitlement of Input Tax Credit (ITC) concerning expenditures associated with In...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
The taxation of transactions within a Hindu Undivided Family (HUF) is governed by specific provisions under the Income Tax Act, 1961. This...
-
The overall effective tax rate of a U.S. multinational corporation may have significant impact on the value of its stock. Therefore, it ...
-
In the case of "Maya Gopinathan vs Anoop SB 2024 INSC 334," the Hon'ble Supreme Court provided insightful guidance on the de...
-
As per Income Tax Laws, any sum received or receivable in cash or kind under an agreement for not carrying business or profession is treat...
-
Introduction The law relating to companies is laid down in Companies Act, 2013 and the rules made thereunder and t...
No comments:
Post a Comment