TMI Blog2016 (6) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... nt; but in the case of income of a company, tax is attracted at a uniform rate, and whether the deduction in respect of bonus was granted in the assessment year 1952-53 or in the assessment year corresponding to the accounting year 1952, that is in the assessment year 1953-54, should be a matter of no consequence to the Department; and one should have thought that the Department would not fritter away its energies in fighting matters of this kind. But, obviously, judging from the references that come up to us every now and then, the Department appears to delight in raising points of this character which do not affect the taxability of the assessee or the tax that the Department is likely to collect from him whether in one year or the other. ” In the result, the appeal of the assessee is allowed. - ITA No. 737/Del/2012 - - - Dated:- 29-4-2016 - SHRI N.K. SAINI, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER For The Appellant : Dr. Rakesh Gupta, Adv. For The Respondent : Shri R.B. Meena, CIT DR ORDER PER SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER The present appeal has been preferred by the assessee against order dated 2.11.2011 passed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port when as per the appellant company no income was accountable for the relevant period. The appellant company vide its letter dated 17.10.2011 submitted as under (relevant portion reproduced): Calculation of alleged income reported by Auditor s note 3(vii) of his Audit Report appearing that page No. 7 of paper book dated 17.02.2011 is being filed at page. 1.... In response to the letter of Ministry of Railway dated 30.01.2008 appearing at page 39 of my paper book dated 17.02.2011, a letter dated 23.05.2008 was written by Director/N.P.M. of the appellant Company, which contain a list of approx date of handed over of STM 4 bandwidth to Railway (the same is further enclosed herewith for your kind perusal at page 2 to 5), the Auditors calculated the income of earlier years by his own assumptions that the Routes which have been handed over on 01.04.2004 thus lease charges is also recoverable from Railway from that date. He lost his sight that the lease changes form Railway is enforceable as w.e.f. 21.09.2006 per agreement dated 21.09.2006 para No. 3.1.11 and not earlier. The company has neither raised the bill prior to dated 21.09.2006 nor it was enforceable for any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same as adopted by the appellant company and is not under dispute. The only cause for dispute is the date on which the RKM have been handed over by the appellant company to the railways. The date of handing over has been clearly depicted in this communication and as already discussed there is no reason to doubt the dates mentioned by a competent officer of the appellant company itself especially when dates of individual handing over of each route has been mentioned. It is not a case of typing error or clerical mistake. The auditor has thus rightly placed reliance on the letter and its annexure and has computed the lease rent basing his calculation by taking the date of handing over as mentioned in the letter. As already mentioned there is no difference in the rate at which the lease rent is to be charged. Further, as the appellant company is maintaining its books of account on mercantile basis this income should have been accounted for by the appellant in the year under consideration. Thus the addition of ₹ 1619.80 lacs made by the AO is confirmed. 4. Aggrieved, the assessee is now in appeal before us. The Ld. AR submitted that the assessee company had entered into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... railways to the assessee about the payment. PB-44 is letter dated 28.11.2008 from the assessee to regional general manager of the assessee only sending the details of STM 4 Bandwidth commission / provided for railways. PB -45 is letter dated 19.12.2008 from railways. PB- 46 is letter dated 12.03.2009 from the assessee to railways informing creation of STM 4 Bandwidth and requesting for the payment as per annexure. PB -47 is annexure dated 12.03.2009 showing the lease charges receivable by the assessee. PB -48 is letter dated 17.03.2009 from the assessee to regional general manager of the assessee. PB 49-50 is letter dated 11.06.2009 from railway to railway board seeking clarification for the resolution of the matter. PB 53-54 is letter from railways dated 13.08.2009 advising to release payment wherever the same has been provision. PB -59 is physical verification of STM 4 Bandwidth provided by assessee for railways dated 28.03.2009. 5. The Ld. AR further submitted that accrual of income is governed by the agreement and, therefore, the various clauses of the agreement cannot be ignored. It was submitted that plain reading of the v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, the Hon ble Punjab and Haryana High Court and the Hon'ble Delhi High Court. In CIT, Delhi, Ajmer, Rajasthan and Madhya Bharat v. Nagri Mills Co. Ltd. (1958) ITR 681, the Hon ble Bombay High Court has held, We have often wondered why the Income-tax authorities, in a matter such as this where the deduction is obviously a permissible deduction under the Income- Tax Act, raise disputes as to the year in which the deduction should be allowed. The question as to the year in which a deduction is allowable may be material when the rate of tax chargeable on the assessee in two different years is different; but in the case of income of a company, tax is attracted at a uniform rate, and whether the deduction in respect of bonus was granted in the assessment year 1952-53 or in the assessment year corresponding to the accounting year 1952, that is in the assessment year 1953-54, should be a matter of no consequence to the Department; and one should have thought that the Department would not fritter away its energies in fighting matters of this kind. But, obviously, judging from the references that come up to us every now and then, the Department appears to delight in raising points of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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