TaxTMI 
TaxTMI 
TaxTMI 
2018 (2) TMI 601
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.... erred in deleting the addition of Rs. 53,56 crores made on account of subsidy payable by the Govt. 2. It is prayed that the order of Ld. CIT(A) be set aside and that of the AO restored." 3. The ld. CIT DR relied upon the assessment order. The Authorised Representative of the assessee relying upon the impugned order submitted that the point at issue is fully covered in favour of the assessee by virtue of the order of the ITAT in 2008-09 assessment year wherein vide its order dated 02/08/2017 in ITA Nos. 816 & 817/Chd/2016 the Department's appeals on identical facts and circumstances on the very same issue was dismissed relying upon the order of the ITAT in assessee's own case for 2005-06 assessment year. Copy of the said order it was submitted had been made available to the ld. CIT DR. The ld. CIT DR agreed. 4. We have heard the submissions and perused the material available on record. It is seen that the issue which is agitated for consideration in the present appeals has been a subject matter of consideration by the ITAT in the earlier years. It is seen that as in the earlier years the AO in the year under consideration also questioned the Accounting System followed....
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....h loss was incurred. In the case of the present appellant, all the books of accounts are duly maintained and produced before the AO. The Hon'ble Delhi High Court observed as under:- "16. The present factual matrix............The said accounting system has been followed for a number of years and there is no proof that there has been any material change in the activities of the assessee as compared to the earlier years. Nothing has been brought on record to show that there has been distortion of profit or books of account did not reflect the correct picture. In the absence of any reason whatsoever, there was no warrant or justification to depart from the previous accounting system which was accepted by the Department in respect of the previous years". In the present case, the AO has not brought on record anything to prove that the appellant has given different accounting treatment to the impugned entries of income/expenditures and further that this has resulted into distortion of its profits. Therefore, I am inclined to accept the plea of the appellant that once an issue is already considered thoroughly and duly accepted in earlier years the same cannot be revisited without....
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....ional 317 MUs pertaining to financial year 2005-06 was realized and accounted for by the appellant during the financial year 2007-08 relevant to the assessment year 2008-09. This fact is evident from the record and it has not been questioned by the AO at any stage. Similar is the position in respect of the figures of revenue expenses understated, revenue income overstated and revenue expenditure overstated. As per contentions of the appellant, full and appropriate effect of the impugned expenses/income has been duly incorporated in the books of account as per its past practice. Again, the AO has not controverted the appellant on facts in respect of these items of the expenditure/income. Thus, in view of the facts and circumstances stated above it becomes clear that the appellant has followed the AS-12 in totality which is as per section 145 of the Income Tax Act. The AO was not justified in making the impugned addition of Rs. 53.56 crores on the basis of the said audit observations. The same is, therefore, ordered to be deleted." 4.1 We note from the aforesaid order of the ITAT dated 02/08/2017 that the co-ordinate Bench was pleased to consider the identical issue in the fo....
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....njab State Electricity Regulatory Authority Commission and the estimates are revised on the basis of rates determined on the basis of report of the Regulatory Authority. In the middle of the year the figures as to supply and rates are revised and the claim is lodged accordingly. Normally, the effect to the revised estimates is given by the Authority after the close of the accounting period and the effect as to the same is given in the year in which the amount is communicated by the Regulatory Authority. The figure intimated is either more or less than the revised estimates so submitted. The process goes on and in the third year the figure is trued up. In such circumstances the assessee does not have any other alternative except to account for the subsidy in the year when the estimates are drawn, results of the revised figures are provided by the Regulatory Authority and then when the figures are trued up on the basis of actual consumption and amount worked out on the basis of orders issued by the Regulatory Authority from time to time. In this way the amount of subsidy received is accounted for from time to time. 34. The total amount of subsidy payable for the year 2007-08 was ta....