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JUDGMENT Sanjiv Khanna, J. - Present appeal relates to assessment year 2007-08 and impugns order dated 7th February, 2014, passed by the Income Tax Appellate Tribunal ('Tribunal', for short). 2. The respondent-assessee an individual had shown returned income of Rs.2,85,924/-, for the assessment year in question. Assessing Officer, vide its order dated 24.12.1999, had made additions and enhanced the income to Rs.65,63,039/- on various counts. The, present appeal is concerned with addition of Rs.60,70,492/- made under Section 68 of the Income Tax Act, 1961 ('Act', for short). The respondent-assessee, as proprietor of M/s International Surgical Agency, had undertaken liaisoning work of sale of medical equipments etc. and had received commission of Rs.1,41,33,516/-. The assessment order records that the assessee had to provide comprehensive warranty for first 5 years, including spares on the medical equipments sold to the customers i.e. government hospitals. She was also required to provide trouble free annual maintenance of equipments without spares for the further/next 5 years. The aforementioned payment of Rs 1,41,33,516/- included service charges for providing maintenance for five years with the supply of spare parts and another five years for maintenance only without spare parts. The respondent-assessee had submitted that the medical equipments were installed in government hospitals, therefore, the machines required constant servicing and maintenance in view of large number of visiting patients. Expenditure on service and parts would increase as the equipments got older. So, Assessee had treated 39% (Rs 55,12,088) out of the aforementioned commission amount, as expenditure which would have been incurred during the tenure of first 5 years and therefore excluded Rs 55,12,088 from the returned income of assessment year in question. Rather, assessee had offered the entire amount of 55,12,088 for tax in proportionate basis, in 5 assessment years as the corresponding or necessary expenditure would be incurred in the said span of 5 years . The Assessing Officer did not accept the said submission and observed that in Schedule 10 relating to Accounting Policies, the…

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