2017 (5) TMI 485

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..... ITA Nos.782/2016, 784/2016, 817/2016, 551/2016 2. ITA Nos.782/2016, 784/2016, 817/2016 are appeals by the Revenue under Section 260 A of the Income Tax Act 1961 ('Act') directed against the common order dated 31st May, 2016 passed by the Income Tax Appellate Tribunal (`ITAT') in ITA Nos. 3947, 3948, 3949/De1/2013 for the Assessment Years (`AY') 2006-07, 2007-08 and 2008-09. ITA 551 of 2016 again by the Revenue is against the order dated 20th May, 2015 of the ITAT in ITA No. 4076/Del/2013 for AY 2009-10. 3. These four appeals seek to raise a common question whether the ITAT was justified in deleting the disallowance of demurrage and wharfage charges, which according to the Revenue was in the nature of penalty and, theref....

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....he Court's attention is drawn by learned counsel for the Assessee to the decision in CIT v Ranbaxy Laboratories Ltd. (2011) 334 ITR 341 (Del). The ratio of the above decision is that where there are actuarial reports supporting the provision to meet a contingent liability, it cannot be gone behind by the Assessing Officer (AO) unless it is shown to be not based on any scientific or know financial principles. 8. It is sought to be urged by learned counsel for the Revenue that only because the actual payouts by way of post-retirement benefits to the employees in the AYs in question were far less than the provision made for that purpose, the actuarial report cannot be said to have been prepared on a scientific basis and was therefore not....

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....the Assessee and should have been added to its income. 11. Learned counsel for the Assessee, on the other hand, states that the concept of 'real income' has been accepted by the Supreme Court in Godhra Electricity Co. Ltd. v. CIT, (1997) 225 ITR 746 (SC) and this was followed by this Court in its decision dated 19th May, 2015 in ITA No.268/2008 (Liquidator Polymerland India Pvt. Ltd. v. DCIT). It is pointed out that where no part of the advance has been able to be recovered by the Assessee, notwithstanding the Award in its favour, no 'real income' can be said to have accrued to it. 12. The ITAT has in the impugned order held as under: "There is no dispute that the ICA has awarded interest to the assessee @ 5% p.a. on the ....