recognised (accrued). In other words, it is not based on the matching concept. Under the matching concept, if revenue is recognised the cost incurred ... warranty costs in its account for the relevant year, otherwise the matching concept fails. In such a case the second option is also inappropriate. Under
matching concept and held that the third option must be the most appropriate, because it fulfills the accrual concept as well as matching concept ... already recognized (accrued). In other words, it is not based on matching concept. Under the matching concept, if revenue is recognized the cost incurred
decisions of the Supreme Court that there should be matching concept of income and expenditure, learned Standing Counsel pointed out that while the assessee ... judgment also pointed out to the settled principle on the matching concept of income and expenditure, that the ultimate analysis results in true income
same order, the Tribunal also explained about
‘matching concept’ on the following lines :
“At this juncture, it is relevant to note
that the ‘matching concept ... goes hand in hand
with the ‘mercantile system of accounting’.
Matching concept underlines the idea of
matching revenues with the corresponding
costs. It recognizes income
already recognized (accrued). In other words,
it is not based on matching concept. Under the
Page ... judis
W.P.Nos.2204 of 2020 and 15299 of 2022
matching concept, if revenue is recognized the cost
incurred to earn that revenue including
already recognized (accrued). In other words,
it is not based on matching concept. Under the
matching concept, if revenue is recognized the cost
incurred ... warranty costs in its account for the relevant
year, otherwise the matching concept fails. In such a
case the second option is also inappropriate. Under
with in the same previous year. Thus, by application of the matching concept, in a year where there is no exempt income, there cannot
ground that the advertisement expenses claimed by the assessee did not match the receipts. Hence, he took the view that a portion of the expenditure ... that the stand of the assessee did not fit into the matching concept of income and expenditure and, hence, confirmed the disallowance
following the real income theory
is possible only by applying the matching principles
concept. In the above circumstances, he submitted that
there are no merits ... find any such facts to accept the plea of matching
concept as invoked by the assessee. However as already seen,
considering the nature of business
historical trend, since it specified the actual concept and the matching concept to determine the historical trend. Thus, the Apex Court pointed
