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2012 (9) TMI 1082 - AT - Income TaxSpecial privilege fee - Held that:- We hold that all these were instances where an assessee could not make even a provision during the relevant previous year due to lack of knowledge or awareness of liability even at the time of finalization of accounts and therefore forced to claim the same in the subsequent year. The dictum regarding accrual of liability referable to earlier years as held by various Hon’ble Courts cannot be applied where the circumstances are exactly to the contrary. In our view, the case law of judicial pronouncements and precedents cannot be relied upon when facts and circumstances of the case in hand lead to a different conclusion. As in the instant case, the assessee has chosen to make a provision in its P&L Account and claim the expenses in the same year itself. This in our opinion, is in consonance with the fundamentals of ‘real income’ for the purpose of taxation. Variance adopted in the method of valuation of the stock was based on the opinion as obtained from the Expert Advisory Committee of the Institute of Chartered Accountant of India - Held that:- Admittedly, the assessee’s submission is that it collects only those bottles which are left empty in front of liquor shops, which has not been controverted by the Revenue. So, there is no cost of acquisition as the same is not assessee’s property. Faced with this situation the ICAI advised it not to value the closing stock in the absence of acquisition as the principle of valuing the closing stock as market value, whichever is lower. So, the closing stock was not valued. Hence, on legality, we agree with the assessee. At the same time, we find from both Assessing Officer and CIT(Appeals)’s orders that there is neither any evidence referred qua proper verification of stock nor any findings of facts to this effect have been recorded. Faced with this situation, we remit the matter back to Assessing Officer to verify the factual position enumerated above after hearing the assessee in accordance with law. - Decided in favour of Revenue for statistical purpose.
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