9911796707
TMI Blog2015 (12) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... had filed return of income on 30.09.2009 for the year 2009-2010 declaring taxable income of Rs. 18,36,08,783/-. The said return was processed under Sec.143(1) and thereafter the said case was selected for scrutiny and notice under Sec.143(2) was issued on 31.08.2010. Further, a notice under Sec.142(1) was also issued on 31.01.2011 calling for information and the case was heard on various dates, the last being on 22.11.2011. The assessee Company is involved in production of Pumps. The holding company of the assessee is a German company. From the returns filed, the assessing authority has found that the assessee had debited an amount of Rs. 77,32,280/- as commission paid and due for the assessment year 2008-2009, consequent to which, a query ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent. We also perused the records and evaluated the facts and circumstances of the case and appreciated the legal propositions canvassed. 5. In this appeal, appellant has raised the following questions of law: "(i) In the facts and circumstances of the case, ought nogt the Tribunal to allow the deduction of commission expenses of Rs. 31,06,189/- which was accrued in the financial year relevant to the A.Y.2009-10 on accrual basis? (ii) In the facts and circumstances of the case, ought not the Tribunal allow accept the method of accounting of commission expenses on accrual basis being the method of accounting followed by appellant in the past years?". 6. The learned Tribunal after evaluating the entire facts and circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and not on the basis of sale realization and this system has been accepted by the department in earlier years as well as in the subsequent year. In our opinion, we are not concerned with the any other year which are not before us. In our opinion, if the department has accepted in earlier year, it was a mistake and there is no merit in continuing the same mistake in the assessment year under consideration. The payment of commission accrued only on realization of sale value and it is to be allowed when the realization of sale value which is in compliance with the agreement cited supra and disallowance is based on the above agreement brought on record by the authorities and hence, we do not find any infirmity in the orders of the authorities ..... X X X X Extracts X X X X X X X X Extracts X X X X
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