TMI Blog1986 (6) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be treated as the assessee s income during the relevant accounting year and after getting the assessee s reply he added back this figure. On appeal, the Commissioner (Appeals) was of the opinion that in paragraph 6 of his direction the IAC had himself observed that keeping in view the facts and decision cited, he was of the opinion that the liability on account of licence fee incurred as per contract with the excise department was totally allowable. Thereafter referring to Kedarnath Jute Mfg. Co. Ltd. v. CIT [1971] 82 ITR 363 (SC), 32 CTR 221 (sic), Addl. CIT v. T. Nagireddy Co. [1976] 105 ITR 669 (AP) and CIT v. Kashiram Agrawalla [1983] 37 CTR (Pat.) 111 he ordered that the addition of Rs. 9,90,000 be deleted from the income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee made such a claim does not necessarily mean that the whole of the amount claimed accrued to the assessee. Every kind of claim on the basis of contractual obligations will not necessarily involve accrual of income. For example, in the case of Shri Someshwar Sahakari Sakhar Karkhana Ltd. v. ITO [1985] 11 ITD 335 (Pune) (SB) the assessee had filed a writ petition in a High Court challenging the action of the Government in fixing the rate of levy sugar and he was allowed by the High Court to receive a higher rate subject to a bank guarantee. It was held that the ITO was not justified in treating the impugned excess realisation as part of sale price and taxing it as a revenue receipt. Again in the case of Harish Chandra v. CIT [1985] 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. Planters Co. (P.) Ltd. [1980] 123 ITR 648(Mad.), what was held in that case was only that the sales tax collected by the assessee earlier could not be brought to tax in a particular year because it had been transferred to the profit and loss account of that year and omission to tax it in the earlier year was no ground for taxing in that year. In the present case the position is rather different. Here the assessee claimed some compensation from the Government but the amount of that claim has never been decided. It was stated on behalf of the assessee that whatever claim was accepted by the Government the assessee was prepared to be taxed thereon, whenever it was so done. This we think would be more fair to both the parties because it is p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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