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2015 (4) TMI 515 - HC - Income TaxTaxability of Transport subsidy - method of accounting - accrual of income - ITAT has fallen in error in holding that the transport subsidy amounting to ₹ 16,11,477/- which was never received by the assessee and for which merely a claim was lodged with the Jammu & Kashmir Government could be treated as income accrued and taxed in the hand of the assessee? - Held that:- Tribunal allowed the appeal of the revenue whereby the CIT had given the benefit of ₹ 16,11,480/- on account of the fact that the assessee had not filed any documentary evidence supporting its claim for the concerned assessment year and had adopted the mercantile system of accounting. It had credited subsidy receivable on 21.3.2002 and therefore, it was considered to be received on the said date. Accordingly, the appeal of the revenue was allowed. Thus, it would be apparent that the assessee apart from adopting mercantile system of accounting had chosen to take benefit of Section 80-IB of the Act and sought exemption. It had never taken the plea before the authorities below which is now sought to be raised that it was only liable to be assessed to the tune of ₹ 5,17,123/- which was actually received in the year concerned. As noticed neither was the certificate filed from the concerned General Manager, District Industries Centre when the return was filed on 31.3.2002. The certificate was only obtained for the subsequent period and therefore, it was never only the case of the assessee from day one that it could take benefit of Clause 6 (vii) of the Scheme which has been reproduced above on the ground that actual freight paid would be the income. Once that was not the specific case before the assessing authority and neither the same material had been placed before the Tribunal, we are of the view that the substantial question of law which is now sought to be raised on the strength of aforesaid clause of the Scheme is not permissible. - Appeal dismissed.
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