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TMI Blog2014 (7) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 303.47 lakhs being the power tariff relating to earlier years was incorrectly claimed as a deduction and whether the alleged incorrect claim was apparent from the records accompanying the return and the documents? 2. Whether on the facts and in the circumstances of the case, the Tribunal was correct in Law in holding that the debate did not exist before the Assessing Officer but only surfaced before the CIT(A), and that therefore the invocation of the summary power to correct errors apparent on the face of the record were available to the Assessing Officer? 3. Whether on the facts and in the circumstances of the case, the Tribunal was correct in Law in holding that the liability of Rs. 303.47 lakhs had not accrued as a liability in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he questions to this Court, and accordingly they were referred. Sri Shaik Jeelani Basha, learned counsel for the applicant submits that though the issue pertaining to the legality of the increase in the tariff was canvassed before this Court, and on dismissal of the writ petition, the matter was taken to the Supreme Court, and it has been decided to make provision for payment of the relevant amount, and deduction under the Act was sought. He further submits that the liability to pay the enhanced tariff was already fixed, and by the time the deduction was claimed, no relief was granted to the applicant, at all, and accordingly the deduction ought to have been allowed. Sri S.R. Ashok, learned Senior Counsel for the respondent, on the other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eads as under: Revenue Recognition: All income and expenditure are accounted on accrual basis except for provision made for disputed power tariff. From this, it is clear that the applicant was equivocal in its stand, as to the liability. Secondly, it is only when the actual accrual takes place, that allowance can be permitted, irrespective of the actual payment. Such accrual would take place as mentioned by the learned Senior Counsel for the department, only when the matter is settled amicably between the parties to the contract or the adjudication has reached finality. Admittedly, nothing of that has taken place. The Income Tax Officer, the Appellate Commissioner, as well as the Tribunal have taken the correct view of the matter, duly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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