TMI Blog2012 (4) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... before this Court to disturb the findings of the Tribunal - against revenue Relief under Section 35AB – Held that: - Definition of "paid" as appearing under Section 43(2) as referring to amount actually paid or "payable" according to the method of accounting upon the basis on which the profits and gains are computed under the head of profits and gains in business or profession, the assessee having the account on mercantile basis and hence, allowed the claim on merits - the assessee admittedly maintaining its account on mercantile basis the contention of the assessee on the applicability of the definition of "paid", as appearing in Section 43(2) is accepted – against revenue. - Tax Case (Appeal) Nos.396 to 404 of 2005 - - - Dated:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year 1990-91 when it was only a consequential order to the order in revision under Section 263? 3. Whether in the facts and circumstances of the case, the deduction under Section 35AB is available on accrual basis without actual payment, regardless of the fact that the words used in the Section is "paid"? 4. The above questions of law arise in T.C.(A) Nos.398, 399 and 402 of 2005. The assessments herein were made pursuant to the orders under Section 263 of the Income Tax Act. 5. As far as T.C.(A) No.402 of 2005 relating to the assessment year 1990-91 is concerned, apart from the question relating to Section 35AB, further substantial questions of law relating to Sections 80HH and 80I are raised in this appeal. 6. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at prevailed in the assessment for the assessment years 1988-89 and 1989-90 for the purpose of considering the merits of reopening the assessment and thereby the issue of limitation. 7. It is pointed out by the assessee that the returns filed for the assessment years were in accordance with the provisions of the Act and the technical knowhow fees were also clearly disclosed while arriving at the net profits under the Companies Act as well as in its computation of income filed along with the returns of income. In the absence of any material to revise the assessment by taking recourse to Section 147, the Tribunal held that the reopening of the assessment was bad in law. 8. As far as the assessment relating to the assessment year 1990- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idering the fact that the assessee admittedly maintained its account on mercantile basis, it upheld the contention of the assessee on the applicability of the definition of "paid", as appearing in Section 43(2). As against the dismissal of the appeals preferred by the Revenue, these Tax Case Appeals are preferred by the Revenue before us. 10. As far as T.C. (A) Nos.396 and 400 of 2005, T.C. (A) Nos.397 and 401 of 2005 and T.C. (A) Nos.398, 399 and 402 of 2005 relating to the assessment years 1988-89, 1989-90 and 1990-91 are concerned, we do not find any ground to disturb the order of the Tribunal, since the reopening in respect of the first two years of assessment were not based in respect of any ground warranting reopening and there ar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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