2010 (11) TMI 776

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....imed the following substantial question of law for determination by this court :   "Whether the right to receive IPRS accrued on the date of export, i.e., March 22, 1993, in the year relevant to the assessment year 1993-94 ?"   3. The facts necessary for adjudication, as narrated in the appeal are that the assessee filed its return for the assessment year 1993-94, declaring net income at Rs. nil. The assessee claimed unabsorbed investment allowances of Rs. 50,454 and Rs. 37,971 for the past assessment years 1989-90 and 1990-91 respectively. The return was processed under section 143(1)(a) of the Act. Assessment was framed, vide order dated March 30, 1994, at an income of Rs. 5,46,412 and, while doing so, the Assessing Office....

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.... taxability of IPRS relating to the assessment year 1993-94. Counsel for the Revenue argued that the IPRS accrued on the date of export, i.e., March 22, 1993, and therefore, the same was exigible to income-tax relating to the assessment year 1993-94.   8. We are unable to accept the aforesaid submission of the Revenue. The issue regarding accrual of income from export incentive came up for con-sideration before this court in I. T. C. No. 184 of 1994 decided on October 11, 2010 (CIT v. Sriyansh Knitters P. Ltd. [2011] 336 ITR 235 (P&H)) wherein it was held that no income accrued till the claim of the assessee was quantified and verified. Admittedly, in the present case, the assessee had submitted the claim for IPRS and received it du....

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....prevailing in the country. It is also not the case that reimbursement of IPRS was being made at a fixed percentage of the exports. Thus the very nature of the scheme is such which requires scrutiny and exami-nation by the Government for determination of the price difference. Until and unless the claim is submitted to the Government and is scrutinized and approved by the Government it cannot be said that the assessee has acquired the right to receive such income. Moreover, the exports were made at the fag end of the accounting year, i.e., about 8 days before the close of the accounting year. Therefore, it does not appear that the assessee delayed submission of its claim for IPRS with an intention to defer its income to the next assessment ye....