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TMI Blog2018 (3) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee has also pointed out to the authorities during the penalty proceedings, that provisions for sales tax refund, which it had reduced, from its profits to determine taxable income, was in fact offered to tax as income in a subsequent assessment year 2000-01 i.e. on passing of orders of refund by the sales tax authorities. It is particularly to be noted that the above amounts were offered to tax for assessment year 2000-01 i.e much prior to initiation of reopening proceedings by the Assessing Officer for subject assessment year 1998-99. Therefore, in the present facts, the view taken by the Tribunal is a reasonable and possible view. - Income Tax Appeal No. 1011 of 2015 - - - Dated:- 20-2-2018 - M.S. SANKLECHA RIYAZ I. CHAGLA, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been offering the sales tax refund as its income as and when the orders of refund are passed by the Sales Tax Officers on its refund claims. This on the basis that they are crystallized only when the refund order has been passed under the Sales Tax Act. The explanation offered by the Respondent was not accepted in the quantum proceedings by the Assessing Officer, Commissioner of Income Tax (Appeals) and the Tribunal. 4. Consequent to the above, the penalty proceedings were initiated. The impugned order of the Tribunal records the fact that the Respondent-Assessee has been consistently following mercantile system of accounting and crediting sales tax refund amount to its income in the year in which an order has been passed in sales tax p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the refund is sanctioned by the Authorities under the Sales Tax Act. Further Respondent-Assessee has also pointed out to the authorities during the penalty proceedings, that provisions for sales tax refund, which it had reduced, from its profits to determine taxable income, was in fact offered to tax as income in a subsequent assessment year 2000-01 i.e. on passing of orders of refund by the sales tax authorities. It is particularly to be noted that the above amounts were offered to tax for assessment year 2000-01 i.e much prior to initiation of reopening proceedings by the Assessing Officer for subject assessment year 1998-99. 7. Therefore, in the present facts, the view taken by the Tribunal is a reasonable and possible view. Consequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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