In the major relief to Monster.com, the Income Tax Appellate Tribunal (ITAT), Hyderabad Bench deleted the addition towards unmatured income.
The revenue assailed the order of the CIT (A) in deleting the addition of Rs.68,82,88,074/- made by the Assessing Officer towards unmatured income wherein the advances shown by the assessee are already accrued and the advances received are not refundable receipts.
The assessee, Monster.Com (India) Private Limited submitted that the issue in this appeal had arisen in the assessee’s own case in the earlier A.Ys including the A.Ys 2004-05 and 2005-06 and the Tribunal had decided the issue in favour of the assessee. He submitted that though the Assessing Officer has taken note of the Tribunal’s decision in favour of the assessee for the A.Ys 2004-05 and 2005-06, he has repeated the addition by observing that the Revenue has not accepted the decision of the Tribunal and that the appeal has been filed before the High Court.
The coram of Accountant Member, A.Mohanalakamoni and Judicial Member, P.Madhavi Devi relied on the decision in favour of the assessee by the order of the ITAT in the assessee’s own case wherein it was held that the assessee followed appropriate revenue recognition method of accounting and thus the income declared on proportional receipt basis cannot be questioned. This order was followed by the ITAT in the assessee’s own case in the A.Ys 2007-08 to 2009-10, wherein the Bench reiterated the stand that was taken in the assessee’s own case in the earlier years. DR however submits that in 2008-2009 a different view was taken in the case of Zenith Energy Services Pvt Ltd., but the fact remains that the factual matrix of the case was different from the facts with which we are concerned. Even otherwise the above said decision was rendered in 2012 wherein the view already taken by the ITAT ‘B’ Bench Hyderabad in 2007 was not referred to and thus the view already taken by the Tribunal earlier, which was recently followed, should be taken as precedent more particularly when a decision was rendered by the Tribunal in the assessee’s own case for the earlier year. Under these circumstances, the order of the Ld. CIT(A) was affirmed and the appeal filed by the Revenue was dismissed.
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