TMI Blog2019 (11) TMI 1303X X X X Extracts X X X X X X X X Extracts X X X X ..... esaid, as the issue has already been decided by this court, the question of law framed on 12.3.2003, which has already been reproduced above, is answered in favour of the assessee. The ITAT was certainly justified in allowing the rebate, de-compounding fee etc and in quashing the order passed under Section 263 of the Income-Tax Act, 1961. - ITA. No.16/2003 - - - Dated:- 18-11-2019 - Justice S.C. Sharma And Justice Shri Shailendra Shukla ORDER The present appeal is arising out of order passed by the Income Tax Appellate Tribunal in I.T.A.No.266/IND/2000 dated 19.9.2002 for the assessment year 1995-96. 2. The facts of the case reveal that the assessment order was passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest is charged at a higher rate and rebate is allowed later on only if repayment is made on the basis of agreed schedule. We have also gone through the copies of accounts of six parties selected by us on random basis and details regarding which were filed during the course of hearing. From these accounts, it is clear that whenever assessee Cropn. receives the amount same is allocated towards interest first and this allocated interest is credited to income on cash basis. When the account is squared up or settled at intermediate point, a rebate is allowed for timely payment only when such rebate is claimed. From these, we are fully satisfied that assessee Corpon. has claimed the rebates and decompounding charges etc. properly. In these circu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he relevant observations contained in the order of the Tribunal are extracted here-under:- 2.3. We have heard the contentions of both the parties. These appeals are against the order passed under Section 143(3) of the Income-Tax Act. It is an undisputed fact that the assssee has switched over the system of accounting from mercantile system to cash system with effect from the assessment year 1991-92. The change in the system of accounting was duly approved by the IDBI and accepted by the Department. Once the assessee has changed the system of accounting from mercantile to cash system, he is required to make certain reverse entries of those amounts, which had been credited on due basis in earlier years, but in fact, have no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceiving the benefits which have already accrued to him in the previous years. 6. In view of the matter, we do not find any merit in this appeal. The appeal is, summarily, dismissed. 5. In the present case also, the liability of rebate, decompounding and waiver of interest etc has arisen due to the agreements executed by the assessee with its clients and it is certainly allowable liability as the assessee duly claimed the same and the Assessing Officer was not justified in rejecting the claim of the assessee that the assessee is now following the cash system of accounting and the rebate on interest etc meted to the period when the assessee was following the mercantile system of accounting. In li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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