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TMI Blog2013 (9) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax (Appeals), which have been affirmed by the tribunal. The Assessing Officer had noticed that grant of Rs.35 crores was sanctioned by the Government in the said year to improve air connectivity in North-Eastern Region. The respondent-assessee had taken on lease four ATR-42-320 aircrafts forfive years from Ms/ Aviande Transport Regional (ATR). 3. The respondent-assessee had authorised and had spread this grant over a period of five years as the lease period of the aircrafts was sixty months. The Assessing Officer disagreed and held that once the respondent-assessee had received the grant of Rs.35 crores from the Ministry of Finance and Company Affairs, the same could not have been spread over five years, i.e., the lease ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tute of Chartered Accountants. It was held that the accounts of the respondent should give true and fair view of the profit and loss account. Reference has been made to judgments of the Supreme Court in CIT versus Woodward Governor India Private Limited, (2009) 312 ITR 254 (SC), CIT versus Bilahari Investments (P) Limited, (2008) 299 ITR 1 (SC) and J.K. Industries Limited & Another versus Union of India & Others, (2007) 312 CTR (SC) 301. 5. The findings recorded by the two appellate authorities is that the standard followed by the respondent was as per accounting standard AS-12 prescribed by the Institute of Chartered Accountants. The said method of accounting cannot be faulted or ignored. It is further recorded that there was no dispute t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Annual Report. He has made reference to Schedule IV of the Annual Report where under the head 'inventories' full details had been given. It is pointed out that the inventories were maintained by Indian Airlines and the figures given by them have been taken in the books. The Auditor had hedged his report and had stated that they could not ascertain inventories of Rs.534.79 lacs in view of the said factual position, i.e., they had taken the figures given by Indian Airlines and had not examined the accounts/books of Indian Airlines. 7. During the course of the first appellate proceedings, in view of the response/contention of the appellant, a remand report from the Assessing Officer was called for. The Assessing Officer did not submit the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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