TMI Blog2018 (2) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... fect. Therefore, no need for the Revenue to continue with this litigation when it was quite clear that not only was it fruitless (on merits) but also that it may not have added anything much to the public coffers. The manner in which the Respondent – Assessee has reflected his income by following mercantile system of accounting cannot be found fault with as the amounts attributable to the period post 31st March is income which has not accrued during the previous year relevant the subject Assessment Year. This is so as it is not due during the period for which the Revenue seeks to bring it to tax. Appellant has not been able to show that the method followed by the Respondent does not correctly bring out the income chargeable to the tax. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on account of license fees. This license fees were billed in January, for the calender year i.e. 1st January to 31st December. However as the Respondent is maintaining its books of accounts on financial year basis 1st April to 31st March, it accounted for the license fee attributable to the period 1st January to 31st March in the previous year relevant to the subject Assessment Year to determine its taxable income and balance attributable to the balance period of the calender month i.e. April to December in the next previous year relevant to the next Assessment Year. In the previous year relevant to the subject Assessment Year the aforesaid balance amounts (which was to be accounted in the next Assessment Year) was shown under the head cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enue carried the issue in further Appeals to the Tribunal. By the common impugned order, the Tribunal upheld the view of the CIT(Appeals). The impugned order further records that while the amounts of license fees are billed in January by the Respondent, yet it recognises the amounts billed attributable for only three months period i.e. January to March of the previous year related to the subject Assessment Year and the balance in the next year. This method has been consistently accepted by the Revenue and nothing has been shown to warrant a change in the subject Assessment Years. Therefore dismissed the Revenue's Appeal. 7. The grievance of the Revenue before us is that as the Respondent is following mercantile system of accounting, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 this character which do not affect the taxability of the assessee or the tax that the Department is likely to collect from him ..... X X X X Extracts X X X X X X X X Extracts X X X X
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