1994 (4) TMI 381

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....of Rs. 2,17,394 for the 1982 calendar year (on cash basis) during the calendar year 1983 relevant to the assessment year 1984-85, the Tribunal was justified in law in holding that the assessee changed the method of accounting for bonus payment from the 'Cash system' to the 'Mercantile system' and in that view allowing both the cash payment of Rs. 2,17,394 and Rs. 4,45,710 claimed on due basis during the assessment year 1984-85?      2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in deleting the disallowance of Rs. 4,45,710 being the provision made by the assessee for the bonus liabilities for the calendar year 1983?      3. Whethe....

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....rd the liability in respect of bonus on Mercantile basis and claim deduction in respect of the expenditure by way of bonus on that basis only. Since, the charge in the system of accounting took place for the first time in the previous year relevant to the assessment year 1984-85, the assessee-company charged to its profit and loss account for the previous year ending 31-12-1983, the bonus payment of Rs. 2,17,394 for the calendar year 1982 on actual payment basis and had also debited its profit and loss account for the year ending 31-12-1983 in respect of bonus payable for the said year. In other words, in the profit and loss account of the assessee-company drawn for the previous year ending 31-12-1983 corresponding to the assessment year 19....

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....ndar year 1982, which was actually paid during the calendar year 1983 corresponding to the assessment year 1984-85, was never claimed and/or allowed as a business deduction in the earlier year in view of the fact that all along the bonus payments were being claimed and allowed as business deduction only on cash basis. The calendar year 1983 is the first year of change. Therefore both actual payments on account of bonus for the calendar year 1982 as well as the provision made by the assessee-company on account of bonus for the calendar year 1983 had to be debited in the profit and loss account of the assessee-company drawn for the calendar year 1983 corresponding to the assessment year 1984-85. It is nobody's case that change of accounti....

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....s advance-tax for the purpose of granting interest under section 214 of the Act arose and it has been decided in favour of the revenue's contention that advance-tax even though paid within the financial year but not in accordance with the provisions of section 211 does not entitle the assessee to interest under section 214. We have gone through the text of the said decision. In the said decision, there were in all four questions of which question No. 2 specifically raised the issue:      "Whether advance-tax paid within the financial year but not strictly in accordance with the provisions of section 211 of the Act is entitled to interest under section 214?" But, there were other two questions raising the issue ....

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....ent order in this case was passed on 29-8-1978 under section 143(3) read with section 144B. As a result of this order of assessment a tax demand of Rs. 2,27,225 inclusive of interest was raised against the assessee-Trust. It is not the case of the assessee that the tax determined on the assessment under section 143(3) exceeded the amount of advance-tax paid by it. After the order under section 143(3) was passed, the Trust approached the Board under section 119 of the Income-tax Act, 1961. Under section 119, the Board can issue instructions and directions to the Income-tax authorities under the Board. If the Board considers it desirable or expedient, the Board can also direct any Income-tax authority, other than the Appellate Authority to gr....