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2005 (2) TMI 30 - HC - Income TaxDeduction - scheme of subsidy through its "Fertilizer Industry Co-ordination Committee" (FICC) - submitted that the Revenue should not be permitted to deny the legitimate claim of the petitioner by refusing deduction of the amount which the petitioner would be called upon to pay in subsequent years, whereby the petitioner is required to adjust the amount or make payment where no recovery is to be made of outstanding bills, and at the said point of time in the relevant accounting year, when such adjustment/payment takes place, the petitioner must be granted appropriate deduction from its taxable income - It is the case of the petitioner that, some time in 2000-01, FICC discovered an error in the computation of retention price right from 1982 and, therefore, decided to recover the excess subsidy, which according to FICC was paid to the petitioner - petitioner would be entitled to make claim of the amount which it is called upon to refund as and when it actually makes the payment and considering the statement made on behalf of the respondents, the petitioner shall be entitled to claim deduction qua such payment from its taxable income in the year in which such payment is actually made – petition allowed
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