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2014 (4) TMI 243 - HC - Income TaxScope of the income to be assessed – Accrual of income - Excise credit - Whether the Tribunal is right in holding that 'excise credit' received by the assessee-company and credited in the profit and loss account does not form part of the income to be assessed – Held that:- The Tribunal was of the view that the right to receive the credit rebate accrued only when there is liability under the Excise Act - Unless the liability under the Excise Act accrues on the production of specified goods in which inputs are used and other relevant conditions are fulfilled by the assessee the benefit by way of credit does not accrue to the assessee - the credit of pro forma rebate taken into account is illusory and no real income had accrued - This was a finding of fact which has not been challenged by the Revenue in the sense that the finding is perverse nor is the finding of the Tribunal was demonstrated by Mr. Dutta, learned advocate for the appellant to be erroneous either in fact or in law. If the assessee had in fact received the money, it would have been a receipt in the nature of revenue but the fact is that the assessee did not receive any money - That is the finding of the Tribunal - The receipt shown in the profit and loss account is an illusory receipt - The assessee had communicated its reasons as to why it resorted to make to such an illusory entry which include that the company had sustained losses and in order to impress the bankers and to please the shareholders the aforesaid entry was passed into the profit and loss account - The Tribunal on facts was satisfied with the explanation - The question raised is a pure question of fact - When the Tribunal was satisfied that the entry did not represent any real income or any real receipt of money, there is no question of the same being taxable – Decided against Revenue.
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