TMI Blog2020 (12) TMI 1389X X X X Extracts X X X X X X X X Extracts X X X X ..... HELD THAST:- It is pertinent to note that the assessee has followed the same method of accounting which is receipt basis for taking remittance on DGH as an income. The change in account in policy in reference to CAG s observation/report was basically to strengthen the fund management of the Assessee Board. The assessee accounted for Rs. 4657 lacs as an income from the sale of data from DGH. From the perusal of the records it can be seen that from accounting purposes it is taken as outstanding on 31st March, 2008 and a sum was realized in the next assessment year and has been accounted for as income. This fact was no where denied by the Revenue. Thus, the CIT(A) has totally ignored this aspect and simply on the basis of change of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and the Revenue against the order dated 27/03/2014 passed by the CIT(A)-XXVI, New Delhi for Assessment Year 2008-09. 2. The grounds of appeal are as under:- ITA No. 4425/DEL/2014 (Assessee s appeal) (1) That Ld CIT (A) has erred both on facts and in law in framing the assessment at an income of Rs 575,37,61,042/- against the returned income of Rs. 531,47,22,540/-. (2) That the Ld CIT (A) has erred in making addition of Rs. 13,28,38,502/- lying with DGH as the fund lying with DGH in custody could not have been brought to tax in the year under appeal since the appellant board is consistently following cash system of accounting for recognizing such income it was never remitted by DGH to the appellant in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 36(1)(xii) of the Income Tax Act, 1961 for and from A.Y. 2008-09 and accordingly any expenditure (other than capital expenditure) if it is spent for the purpose of the object for which it was established has to be allowed. The assessee, in the past, had been claiming the royalty payment on the basis of actual payment i.e. cash basis till Assessment Year 2007-08. However, from the Assessment Year 2008-09, the method of accounting in pursuance of C AG directions was changed for some receipts and expenditure from cash to accrual method of accounting. Consequentially, the assessee claimed royalty payment on accrual basis on the basis of the quantification as per the existing guidelines of the Office of the Directory General of Hydroc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A.Y. 2009-10 when the Assessee has accounted for this income. The Ld. AR relied upon the decision of the Tribunal in the case of ACIT vs. NBCC Ltd. [Appeal no. 5870-Del-2010] on similar issue held that as the tax rates were the same in both the years, department should not fritter away its energies in raising questions as to the year of deductibility/taxability. The Ld. AR also relied upon the Hon ble jurisdictional High Court s decision in case of CIT vs. Shri Ram Pistons Rings Ltd [220 CTR 404] wherein it is held that when there was no change in the rate of tax for the particular Assessment Year, the question, therefore, is only with regard to the year of deduction and it is not necessary to determine the year of taxability of the amo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2010) (Madras High Court). Hence the CIT(A) correctly deleted the disallowance of expenses amounting to Rs. 30.62 crores made by the Assessing Officer. Considering the same analogy as relied by the CIT(A) while deleting the disallowance of Rs. 30.62 crores, the addition made on account of income amounting to Rs. 13.28 crores, which has already been accounted for in the next year, and thus prayed for deletion of the addition. 10. We have heard both the parties and perused the material available on record. Firstly we take up assessee s appeal. It is pertinent to note that the assessee has followed the same method of accounting which is receipt basis for taking remittance on DGH as an income. The change in account in policy in reference to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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