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2016 (3) TMI 1009 - AT - Income TaxAccrual of income - Assessment of income - nature of receipt - assessee has received power escalation charges from CSEB - department has taken a view that the said amount is taxable on accrual basis, therefore, made additions for the assessment year 2008-09 - Held that:- CIT(A) after considering the facts and circumstances of the case, held that it is settled principles of law that there cannot be double taxation of any income and set aside the issue to the file of the A.O. with a direction to consider the assessee’s submissions. In case the appeal of the assessee for the assessment year 2008-09 is dismissed, then the relief should be allowed for assessment year 2009-10. In case, the appeal of the assessee for the assessment year 2008-09 is allowed in favour of the assessee, then no relief should be given for the assessment year 2009-10. The sum and substance of the CIT(A)’s order is that the income is taxable either for the assessment year 2008-09 or for the assessment year 2009-10 and it cannot be taxed for both the assessment years. We concurred with the decision taken by the CIT(A). It is settled proposition of law that no income shall be taxed twice. In the present case on hand, the A.O. has accepted that the income has been taxed by the department for the assessment year 2008-09. As rightly contended by the assessee it can be taxed either for the A.Y. 2008-09 or 2009-10 and it cannot be taxed for both the years. Therefore, we are of the opinion that, the CIT(A) has rightly set aside the issue to the file of the A.O. with the above direction. We do not find any error or infirmity in the order passed by the CIT(A) - Decided against revenue Disallowance of sales tax and service tax on payment basis - addition u/s 43B - Held that:- We are of the opinion that CST and Service tax paid under protest is deductible in the year in which such liability was paid u/s 43B of the Act, irrespective of whether such liability was incurred in any previous year. Therefore, we direct the A.O. to delete the additions made u/s 43B of the Act.- Decided against revenue
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