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2017 (1) TMI 1669 - HC - Income TaxAccrual of income - Demurrage/wharfage charges accrued to the assessee - assessee followed mercantile system of the accounting - existing right in favour of the assessee to receive the charges and the assessee accordingly billed for the same - HELD THAT - The issue came up before this court in respect of the same assessee 2016 (10) TMI 1263 - RAJASTHAN HIGH COURT wherein it has been held Tribunal while considering the issue has rightly appreciated and has rightly allowed the appeal preferred by the assessee. Assessee was a Government Corporation and has shown the liability in spite of stay order granted by the Court and in our view, the view taken by the Tribunal is just and proper. The issues are required to be answered in favour of the assessee and against the Department.
Issues Involved:
Appeal against tribunal's judgment and order regarding demurrage/wharfage charges under the Customs Act. Analysis: 1. The appellant challenged the tribunal's decision that dismissed the department's appeal and partially allowed the cross objections. The High Court admitted the appeal and framed a substantial question of law related to demurrage/wharfage charges under the Customs Act, questioning if such charges accrued to the assessee despite following the mercantile system of accounting and having the right to receive the charges. 2. The appellant's counsel referred to a previous case involving the same assessee, where the Tribunal had ruled in favor of the assessee, a Government Corporation, despite a stay order. The High Court upheld the Tribunal's decision, stating that the view taken by the Tribunal was just and proper, leading to the issues being answered in favor of the assessee and against the Department. 3. Ultimately, the High Court concluded that the issues should be resolved in favor of the assessee based on the previous ruling and dismissed the appeals. The judgment emphasized placing a copy of the order in each file for reference and compliance.
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