3334/Chny/2019
accounting, this matching is required to be done on
accrual basis. Under this matching concept, revenue
and income earned during an accounting ... matched with the cost of resources consumed (expenses). For
this reason, in the opinion of the High Court, this matching
concept is required
following the accounting
principle of matching concept. Therefore, the disallowance made by the AO
was uncalled for, however, the same was upheld ... incomes are
matched with the cost of resources consumed. The matching is to be
done on accrual basis. Under this matching concept, revenue and
income
promised good under the contract. Under this method, by
following the matching concept of accounting principles, costs are accumulated
during the course of contract. Profit ... unit is transferred to the customer to satisfy the
criteria of matching concept of accounting. In the matching concept, revenue
and income earned during
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
Nirma Limited, Ahmedabad vs The Acit.,Circle-5,, Ahmedabad on 30 June, 2023
आयकर अपीलीय
learned AO has erred in not accepting
the matching concept of accounting enunciated by the
Generally Accepted Accounting Principles ... proportionately in the year of providing the services.
Subsequently, following the matching concept, the cost in
relation to providing such services has been recognized
affirming the orders of the authorities
below, by invoking the 'Matching Concept'. It is observed by the High Court
that under the mercantile ... matched with the cost of resources consumed (expenses). For this reason, in the
opinion of the High Court, this matching concept is required
that case, the Supreme Court had referred to this "matching
concept". It was held that ordinarily revenue expenditure incurred wholly ... case. The learned counsel for the
Revenue had strongly argued that matching concept is to be applied, as per
which part of the expenditure
appellant is
difficult and takes some time. Following the matching concept and the
mercantile system of accounting, as the revenue was recognized during the
year ... payable to the producers/owners of the music
under the 'matching concept' of accounting principles. Such royalty
represents a substantial part
