Covering over the periods is
in compliance with the matching concept of accounting and
accordingly the pit covering expenses is charged to revenue
over ... Covering over the periods is in compliance with the
matching concept of accounting and accordingly the definite
and ascertained liability is proposed to charge
from
the sale of the goods. However, the application of the matching
concept under this Framework does not allow the recognition of
items ... already recognized (accrued). In other words, it
is not based on matching concept. Under the
matching concept, if revenue is recognized the
cost incurred
next twelve months which necessarily entailed costs. Hence, on matching cost concept, it was emphatically stated by Mr. Dastur that there was nothing wrong ... little later. Before that let us briefly deal with the matching cost concept on which rest the assessee's main arguments. Undoubtedly, matching cost
provisions were necessary to
arrive at the on the basis of matching concept that provision for warranty had been allowed as
deduction by the Tribunal ... recognized (accrued). In
other words, it is not based on the matching concept. Under the matching concept, if
revenue is recognized the cost incurred
assessee that the concept of matching of cost with the revenue is not applicable to its case. The matching concept required and the assessed, acting ... mercantile system of accounting, this matching is required to be done on accrual basis. Under this matching concept, revenue and income earned during an accounting
genuineness and allowabilities of these expenses with respect to inter alia matching
concept.
iv) That the AO in the assessment order has not discussed ... learned DR submits that the AO has not
examined the matching concept inasmuch as the corresponding credits of revenue
has not been offered
Jurisdictional High Court was considering the matching
concept. It held that under the mercantile system of accounting, in order to
determine the net income ... matching
cost is not applied, then the profits get distorted. The learned Departmental
Representative relied heavily on this aspect of matching concept. When
there
Jurisdictional High Court was considering the
matching concept. It held that under the mercantile system of accounting,
in order to determine the net income ... matching cost is not applied, then the profits get distorted.
The learned Departmental Representative relied heavily on this aspect of
matching concept. When there
blatant violation of the provisions
of the Income Tax Act and Matching concept as
cost can be debited or matched only with the
revenue ... Mercantile System of
Accounting, this Matching is required to be done on accrual basis. Under this
Matching concept, revenue and income earned during an Accounting
blatant violation of the provisions
of the Income Tax Act and Matching concept as
cost can be debited or matched only with the
revenue ... Mercantile System of
Accounting, this Matching is required to be done on accrual basis. Under this
Matching concept, revenue and income earned during an Accounting
