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2016 (6) TMI 796 - AT - Income TaxAccrual of income - Addition to rent receivable from the Railways for use of STM 4 Bandwidth on accrual basis - the income was not booked as per Accounting Standard-9(AS-9) issued by the ICAI - Assessee submitted that since the tax rates applicable to the company both in assessment year 2008-09 (i.e. the year under appeal) and assessment year 2009-10 (i.e. the year in which the company had included the impugned amount in its income) were the same, the adjustment made by the Department was revenue neutral. Held that:- In CIT, Delhi, Ajmer, Rajasthan and Madhya Bharat v. Nagri Mills Co. Ltd. (1957 (9) TMI 30 - Bombay High Court ) the Hon’ble Bombay High Court has held, “We have often wondered why the Income-tax authorities, in a matter such as this where the deduction is obviously a permissible deduction under the Income- Tax Act, raise disputes as to the year in which the deduction should be allowed. The question as to the year in which a deduction is allowable may be material when the rate of tax chargeable on the assessee in two different years is different; but in the case of income of a company, tax is attracted at a uniform rate, and whether the deduction in respect of bonus was granted in the assessment year 1952-53 or in the assessment year corresponding to the accounting year 1952, that is in the assessment year 1953-54, should be a matter of no consequence to the Department; and one should have thought that the Department would not fritter away its energies in fighting matters of this kind. But, obviously, judging from the references that come up to us every now and then, the Department appears to delight in raising points of this character which do not affect the taxability of the assessee or the tax that the Department is likely to collect from him whether in one year or the other. ” In the result, the appeal of the assessee is allowed.
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