TaxTMI 
TaxTMI 
2016 (11) TMI 1050
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....to Rs. 11,09,321/- without considering all the grounds of appeal and submission of facts of the case. 2. The learned Commissioner Of Appeals-8 completely ignored to take in to account facts of the case of CIT v/s Excel Industries Ltd (Supreme Court ) ITR-358 (Par t -2) - Page 295 3. Wi thout prejudice to aforesaid the learned Comm. Of Appeals did not consider above case in his order in spite of submission made vide letter dated 01/05/2014. 4. The appellant pleads your honors to give relief and it is prayed that order of ld. Commi s s ioner Of Income Tax Appeal -8, Mumbai be quashed and additions of Rs. 11,09,321/- be deleted. 5. The Appellant craves leaves to add, amend, alter or delete or any other grounds of Appeal." 2. The brie....
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....wed the same procedure in the following year also and have already offered the said amount for tax in the year of receipt from sale of DEPB license. 7. Learned AR in order to strengthen his arguments submitted that the reason for accounting DEPB on cash basis is that premium on DEPB fluctuates by 5% to 10% in the market as per demand/supply gap. The seller may get higher amount on actual sell/realization depending upon market conditions on that date. Since, the assessee waits for a favourable market condition and sells DEPB in the market when premium are comparatively high, therefore, assessee accounts for the same on actual money realization basis. 8. On the other hand, learned DR relied upon the order passed by the Revenue Authorities. ....
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....Court in the case of CIT Vs. M/s. Excel Industries Ltd., reported in 358 ITR 295. The operative portion of the same is reproduced below. "32. Thirdly, the real question concerning us is the year in which the assessee is required to pay tax. There is no dispute that in the subsequent accounting year, the assessee did make imports and did derive benefits under the advance licence and the duty entitlement pass book and paid tax thereon. Therefore, it is not as if the Revenue has been deprived of any tax. We are told that the rate of tax remained the same in the present assessment year as well as in the subsequent assessment year. Therefore, the dispute raised by the Revenue is entirely academic or at best may have a minor tax effect. There wa....
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.... be payable. Where, however, the income can be said not to have resulted at all, there is obviously neither accrual nor receipt of income, even though an entry to that effect might, in certain circumstances, have been made in the books of account." After considering the principles laid down by Hon'ble Supreme Court we have observed that since in the present case, the assessee had been following the said procedure consistently and has already offered the income for tax in the year of receipt from the sale of DEPB license. Considering the facts of the present case and the fact that system of accounting of DEPB entitlements on cash/ realization basis has been consistently followed year after year by the assessee in past also and more so sinc....