Income Tax Appellate Tribunal - Ahmedabad
Dcit(Osd), Circle-8,, Ahmedabad vs Vodafone West Limited(Earlier Known ... on 20 March, 2017
आयकर अपीलीय अिधकरण,
अिधकरण अहमदाबाद यायपीठ 'ए' अहमदाबाद।
IN THE INCOME TAX APPELLATE TRIBUNAL
"A" BENCH, AHMEDABAD
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER
आयकर अपील सं./ ITA No. 2024/Ahd/2013
िनधा रण वष / Assessment Year : 2006-07
DCIT (OSD), M/s. Vodafone West Ltd,
Circle-8, Vs (Earlier known as Vodafone
Ahmedabad Essar Gujarat Ltd.)
Vodafone House, Corporate
Road, Prahladnagar, Off. CG
Road, Ahmedabad
PAN : AAACF 1190 P
अपीलाथ /
अपीलाथ (Appellant) यथ
यथ /
थ (Respondent)
Revenue by : Shri K. Madhusudan, Sr DR
Assessee by : Shri S. N. Soparkar, AR
सुनवाई क तारीख/ Date of Hearing : 25/01/2017
घोषणा क तारीख / Date of Pronouncement: 20/03/2017
आदेश/O R D E R
PER MAHAVIR PRASAD, JUDICIAL MEMBER:-
This appeal by the Revenue is directed against the order of the Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad dated 16.05.2013, passed for Assessment Year 2006-07.
2. The grounds of appeal raised by the assessee read as under:-
1a). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the addition of Rs. 108,52,90,000/-
made on account of advance income (pre-paid services) on the ground of consistent accounting policy but ignore the principles of mercantile system of accounting according to which, in Assessee's own case for A.Y:2005-06, the Hon'ble ITAT has held that the amount was recognized as income of the year in which right to received accrues to Assessee.
ITA No. 2024/Ahd/2013DCIT vs. Vodafone West Ltd AY : 2006-07 2 1b). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts to ignore the fact that the amount received by Assessee on recharges of pre-paid services being un-refundable had accrues to Assessee in the year of receipt itself & hence taxable in Assessee's hand.
1c). The Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad has erred in law and on facts in deleting the addition of Rs. 108,52,90,000/- made on account of advance income (pre-paid services) on the ground of consistent accounting policy but ignoring the fact that Assessee did claim expenses pertaining to such advance income which ought to have been disallowed by following the same accounting policy.
2). On the facts and in the circumstances of the case, the Ld. Commissioner of Income-Tax (Appeals)-XIV, Ahmedabad ought to have upheld the order of the Assessing Officer.
3). It is therefore, prayed that the order of the Ld. Commissioner of Income-
Tax (Appeals)-XIV, Ahmedabad may be set-a-side and that of the order of the Assessing Officer be restored.
3. We have heard both the parties and perused the material placed before us. We find this issue to be covered in favour of the Revenue by the decision of ITAT in assessee's own case for Assessment Year 2009-10 vide consolidated order dated 17.11.2016 in ITA Nos.909/Ahd/2014 and 944/Ahd/2014, wherein the ITAT held as under:-
"24. The Revenue's next substantive ground no.7 pleads that the DRP has erred in law and on facts in deleting addition of Rs.1,21,82,00,000/- made in the course of the impugned draft assessment on account of receipt of prepaid services crystallized in the impugned assessment year. The sole issue between the parties is about income arises from sale of prepaid cards. The Revenue treats the same to be a mere recharge taxable in the year of purchase. The assessee's stand as against this is that AS-9 mandates revenue recognition only when the corresponding services are actually rendered. We notice from the case file that a co-ordinate bench of this tribunal in (2013) 31 taxmann.com 239 (Delhi-trib.) ACIT vs. Shyam Telelinks Ltd. upholds the said assessee's identical contention on the principle of recognition of income of accrual basis pertaining to sale of prepaid SIM cards. We further notice that the said co-ordinate bench in para 16 remits the issue back to the ITA No. 2024/Ahd/2013 DCIT vs. Vodafone West Ltd AY : 2006-07 3 Assessing Officer for factual verification to prevent revenue leakage. We also follow suit in this legal and factual backdrop and direct the Assessing Officer to verify as to whether the assessee has declared the revenue in respect of the expired prepaid cards or not in the succeeding assessment year. This Revenue's ground is thus partly accepted for statistical purposes."
4. Admittedly, the facts of the year under consideration are identical. In view of above, we, respectfully following the decision of ITAT in assessee's own case for AY 2009-10, allow the grounds of appeal of the Revenue on similar lines.
5. In the result, Revenue's appeal is deemed to be allowed for statistical purposes.
Order pronounced in the Court on 20th March, 2017 at Ahmedabad.
Sd/- Sd/-
N.K. BILLAIYA MAHAVIR PRASAD
(ACCOUNTANT MEMBER) (JUDICIAL MEMBER)
Ahmedabad; Dated 20/03/2017
आदेश क ितिलिप अ ेिषत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent.
3. संबंिधत आयकर आयु / Concerned CIT
4. आयकर आयु (अपील) / The CIT(A)
5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad
6. गाड फाईल / Guard file.
आदेशानुसार/ BY ORDER, TRUE COPY उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad