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TMI Blog2016 (5) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... g the year has been offered to tax in the subject assessment year is essentially a finding of fact. On principle it cannot be disputed that income only arises when the same has accrued to the respondent-assessee who follows the mercantile system of accounting. Tribunal was correct in its decision that the amounts received from various public sector companies were only advances and not receipts of income, based on the percentage completion method followed by the Company Appeal admitted on substantial questions of law at question nos. (iii) and (iv). (iii) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in upholding the orders of the CIT(A) in regard to the liability on account of warrant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal was right in holding that the provision of warranty is an ascertained liability within the provisions of Section 115JB of the Income Tax Act? (v) Whether the Tribunal was correct in its decision that the amounts received from various public sector companies were only advances and not receipts of income, based on the percentage completion method followed by the Company? 3. Regarding Question Nos.(i) (ii):Mr. Suresh Kumar, the learned counsel for the Revenue very fairly states that both these issues stands concluded in favour of the respondentassessee and against the Revenue by virtue of the decision of this Court in Godrej Boyce Mfg. Co. Ltd. Vs. Deputy Commissioner of IncomeTax and another 328 ITR 81. Thus, in view of the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt-assessee follows the mercantile system Accounting and adopting the percentage completion of method. The finding by the Tribunal that the amounts related to the milestones achieved during the year has been offered to tax in the subject assessment year is essentially a finding of fact. On principle it cannot be disputed that income only arises when the same has accrued to the respondent-assessee who follows the mercantile system of accounting. (e) In the above view, being a finding of fact, question no.(v) as proposed does not give rise to any substantial question of rise. Thus, not entertained. 5. The Appeal admitted on the substantial questions of law at question nos. (iii) and (iv). 6. Registry is directed to communicate a copy ..... X X X X Extracts X X X X X X X X Extracts X X X X
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