TMI Blog2013 (10) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... M.,JJ. For the Petitioner : Shri P. K. Singh For the Respondent : Ms. Saisudha Multani ORDER Per Sanjay Arora, A. M. These are the cross Appeals, i.e., by the Revenue and the Assessee, arising out of the Order by the Commissioner of Income Tax (Appeals)-41, Mumbai ('CIT(A)' for short) dated 18.10.2010, partly allowing the assessee's appeal contesting its assessment u/s.143(3) of the Income Tax Act, 1961 ('the Act' hereinafter) for the assessment year (A.Y.) 2007-08 vide order dated 30.11.2009. 2. Opening the arguments for and on behalf of the assessee, it was submitted by the ld. Authorized Representative (AR), its counsel, that the only issue in the assessee's appeal (in ITA No.9132/Mum/2010) relates to the disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al in the assessee's own case for the earlier years, submitting a summary in this respect. Proceeding ground-wise, the first issue is qua disallowance u/s.14A in respect of dividend income received by the assessee for the relevant year (Rs.137.18 lacs), which is claimed and allowed as exempt u/s. 10(15) of the Act. While the tribunal for the earlier years, i.e., A.Ys. 2000-01 and 2004-05, had restricted the disallowance to 2% of the dividend income, for the later years, i.e., A.Ys 2005-06 and 2006-07, the matter has been set aside to the file of the A.O. to be decided afresh in terms of the decision by the hon'ble jurisdictional High Court in the case of Godrej and Boyce Manufacturing Co. Ltd. vs. Dy. CIT [2010] 328 ITR 81 (Bom). She would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (copy on record/PB pgs.1-2). The matter was thus pleaded to be covered in its favour. 7. We observe that the AO has relied on the decision in the case of CIT vs. Punjab Bone Mills [1998] 232 ITR 795 (P H), which is on the point and, further, since upheld by the apex court (at [2001] 251 ITR 780 (SC)), clarifying that accrual, which in that case was in context of cash incentive on exports, would be when the right to receive the incentive arose, i.e., when a valid claim for cash incentive was filed by the assessee with the relevant department of the government after the execution of the export. The same is, in fact, also consistent with the guidance note issued by the Institute of Chartered Accountants of India in the matter, and toward wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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