AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2016 (7) TMI 964
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....pondent was in accordance with the established norms and thereby deleting the disallowance made by the Assessing Officer, despite the fact that the assessee had debited the amount of commission receivable, in his books of account?" 2. Learned Counsel for the assessee has submitted that the issue involved in these appeals is identical to one which has been decided by this Court in case of Commissioner of IncometaxII v. Gujarat Apollo Industries Ltd. [2015] 55 taxmann.com 158 (Gujarat) and has placed reliance upon the following paragraphs: "4. This, court has considered the submissions advanced by the learned counsel for the appellant. It, however, is an admitted position that an identical question arose for consideration before this co....
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....lity to disburse or pay. However, in both cases, unless there is real income, there cannot be any income tax. In the instant case also, there is no real income so far as Rs. 3 lacs are concerned because no debt has been created in favour of the assessee by virtue of clause No. 14 of the contract and as the assessee did not get any right to receive the said amount during the previous year in question, it cannot be said that income in respect of the amount in question had been accrued to the assessee during the previous year in question. Looking to the facts of the present case and in the light of the law laid down by the Hon'ble Supreme Court in the cases referred to hereinabove, it is very clear that unless and until a debt is created i....
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....ad accrued to the assessee. We can test the above conclusion in a different manner too. Whether Godrej was liable to pay Rs. 4 lacs to the assessee in spite of the fact that quality of the plant was admittedly not up to the mark? Did the assessee get a vested right to get the said amount? Answer to these questions would be in negative and, therefore, as observed hereinabove, it cannot be said that income had accrued to the assessee. A similar question had arisen in case of C.I.T. v. Simplex Concrete Piles (India) Pvt. Ltd., 179 ITR 8, (Cal.). Having regard to the facts and circumstances of the case, it was held in that case that, when there is a clause with regard to retention money, the assessee gets no right to claim any part of ....
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....oner (Appeals) was of the view that there was no need to disturb the method of accounting followed by the assessee company and also found no discrepancy in terms and conditions of purchase orders. The Tribunal has concurred with the findings recorded by the Commissioner (Appeals). 6. From the facts and contentions noted hereinabove, it is amply clear that the controversy involved in this case stands concluded in favour of the assessee and against the revenue by the above decision of this court. Under the circumstances, no question of law can be stated to arise as proposed. This ground of appeal is, therefore, dismissed. 7. Insofar as the second question which relates to addition of Rs. 28,36,668/- under section 14A of the Act on accou....
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....) has, after analyzing the material on record, found as a matter of fact that the assessee had sufficient surplus funds at its disposal for making any investment in share and for business purpose and therefore, there was no nexus that could be established with the expenditure incurred by the assessee for earning the exempt income. Thus, the conclusion arrived at by the Tribunal is based upon concurrent findings of fact recorded by it after appreciating the evidence on record. On behalf of the appellant, nothing contrary has been pointed out so as to dislodge the findings of fact recorded by the Tribunal, nor is it the case of the assessee that the Tribunal has taken into consideration any irrelevant material or that any relevant material ha....