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TMI Blog2019 (4) TMI 965X X X X Extracts X X X X X X X X Extracts X X X X ..... isions have been referred to in the Assessment Order, and the claim of the Assessee was made in that provision, but since the Assessee has not claimed weighted deduction of one and half times but only on the actual total expenditure incurred by the Assessee in this year on accrual basis, since the direction of the State Government for the payment of ₹ 20,00,000/- came just before the end of the financial year, therefore, in our opinion, the entire expenditure in this regard ie., ₹ 33,55,400/-, deserves to be allowed in the hands of the Assessee under Section 37 for A.Y.1992-1993 in the present case. Therefore, both the authorities below have rightly allowed the same under Section 37 of the Act and the question of applying Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Tribunal as well as the CIT (A) in our opinion rightly allowed this practice to be adopted by the Assessee on account of reimbursement only for cash basis. Therefore, the Second Question of Law also deserves to be answered as against the Revenue and in favour of the Assessee. - Tax Case Appeal Nos. 283 and 284 of 2006 - - - Dated:- 21-3-2019 - Dr. Justice Vineet Kothari And Mr. Justice C.V. Karthikeyan For the Appellant : Mr. M.Swaminathan, Ms.V.Pushpa Senior standing counsel For the Respondent : Mr.A.S.Sriraman for Mr.S.Sridhar COMMON JUDGMENT DR.VINEET KOTHARI, J The Revenue has filed these two Appeals, raising the Substantial Questions of law under Section 260A of the Act, against the order of the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... holding that no additional tax could be levied under Section 143 (1A) in the case of reduction of loss, without applying the provisions of section 143 (1A)(B) introduced with retrospective effect from 1.4.1989 by the Finance Act, 1993? 4. The learned counsel for the Revenue Mr.M.Swaminathan urged before us that the deduction claimed by the Assessee in respect of the contribution of ₹ 33,53,400/- towards the contributions made to the Institute of Road Transport, indicates that the scientific research was made by the Assessee, under Section 35(1)(ii) of the Act which pertains to weighted deduction of one and half times of expenditure incurred, by the Assessee on the Scientific Research Institution, and not under Section 37 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.10,00,000/- 10.08.1992 ₹ 5,00,000/- 12.09.1992 ₹ 5,00,000/- 20.10.1992 ₹ 5,00,000/- 9.11.1992 ₹ 5,00,000/- Rs.33,55,400/- 6. From the above, we can see that though the payments to the extent of ₹ 13,53,000/- was made by the Assessee before the end of the previous year i.e, on 31.03.1992 relevant to the Assessment year 1992-1993 and ₹ 20,00,000/- on four different dates in the next financial year 1992-1993, but the Assessee has not even claimed weighted deduction under Section 35 (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessee to the students to travel in the buses operated by it in the State. The Assessee adopted the accounting of such reimbursement received from the State Government, on cash basis. The Assessing Authority, on the other hand, sought to tax such reimbursement amount which was even though received in the later years as accrued income in the present Assessment Year 1992-1993. We find that even though the Assessee, a Government Corporation was usually adopting the mercantile method of accounting, but for the Student Concession Passes given to the students as per the directions of the State Government, which was reimbursed by the State Government with a delay in later years, the Assessee as a Commercially prudent business organisati ..... X X X X Extracts X X X X X X X X Extracts X X X X
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