Advance Income from AMC Contracts Not Taxable Entirely on Invoicing: ITAT Grants Relief to HP India, Confirms Consistent Accounting Method, Allows Proportionate TDS Credit

The ITAT ruled that advance income from AMC contracts is not fully taxable on invoicing. HP India received proportionate TDS credit, reaffirming consistency in accounting methods. The judgment provides clarity on recognition of income, aligns taxation with actual cash flow, and prevents undue financial burden on businesses following consistent accounting practices.