TMI Blog2014 (7) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... d the amount – Decided against Assessee. - R.C. No. 35 of 1999 - - - Dated:- 11-7-2014 - L. Narasimha Reddy And T. Sunil Chowdary,JJ. For the Applicant : Sri Shaik Jeelani Basha For the Respondent : Sri S. R. Ashok, Senior Counsel ORDER (Per the Honble Sri Justice L. Narasimha Reddy) The Hyderabad Bench of Income Tax Appellate Tribunal, A (for short the Tribunal), referred the following questions, viz., 1. Whether on the facts and in the circumstances of the case, the Tribunal was correct in Law in holding that the applicant had made the claim for deduction of a sum of ₹ 303.47 lakhs being the power tariff relating to earlier years was incorrectly claimed as a deduction and whether the alleged incorrec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llow deduction of the amounts, representing the difference of tariff, being ₹ 4,53,83,917/-. Out of this, ₹ 3,03,47,000/- was for certain earlier years, and ₹ 1,50,37,000/- was for the concerned account year, under consideration. The Income Tax Officer disallowed the said amount by stating certain reasons. Aggrieved by that, the applicant carried the matter in appeal before the Commissioner. The Appeal was dismissed on 06-10-1995. Hence, the appellant filed I.T.A.No.1727/Hyd/95 before the Tribunal. The Tribunal dismissed the appeal through order dated 30-12-1996. Thereupon, the applicant sought reference of the questions to this Court, and accordingly they were referred. Sri Shaik Jeelani Basha, learned counsel for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y had accrued. In the second instance, the assessee must be clear in his or its mind. A categorical statement must be made, acknowledging the liability to pay the amount. The stand of the applicant herein was wavering, throughout. In the three or four assessment years, for which the liability accrued, deduction was not even claimed. Except that a provision was made, it was neither stated that the amount was paid to the electricity supplier, or that the liability has been acknowledged. The Appellate Commissioner as well as the Tribunal took note of a paragraph in page 88 of the annual report of the applicant, for the years 1993-94. The paragraph reads as under: Revenue Recognition: All income and expenditure are accounted on accrual ba ..... X X X X Extracts X X X X X X X X Extracts X X X X
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