2008 (9) TMI 21

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.... D. Jolly CORAM:- HON'BLE MR JUSTICE BADAR DURREZ AHMED HON'BLE MR JUSTICE RAJIV SHAKDHER BADAR DURREZ AHMED, J (ORAL) 1. This appeal is directed against the Tribunal's order dated 20.01.2006 in ITA 2708/D/2002 pertaining to the assessment year 1998-1999. For the year ending 31.03.1998, the assessee had provided for a sum of Rs 72 lacs under the head 'salaries and wages', pending re....

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....would be revised with effect from 01.07.1999. This was the position as existing on the date of the balance sheet, i.e., 31.03.1998. It was further contended that it was only subsequently that the Board of Directors of the assessee decided to give effect to the pay revision from 01.07.1997. This decision was taken only in the Board meeting held on 28.09.1998. 4. On behalf of the assesee it was u....

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....e made for the period prior to 01.07.1999, as indicated by the minutes of 65^th meeting of the Board of Directors held on 28.09.1998 under agenda item No. 6. The said minutes have been placed before us in the appeal paper book. We note that under agenda item No. 6, paragraph 6.1 of the said minutes clearly indicates that the Board considered the matter in depth, particularly, the issue whether the....

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....nt by way of revised pay as on 31.03.1998 and such liability accrued for the first time during the financial year 1998-1999 when the decision was taken to revise the pay scales with effect from 01.07.1997 instead of 01.07.1999 as per the earlier decision. 6. Although the Tribunal took the view that no notification had been issued by the Central Government indicating the approval to Accounting S....