2008 (9) TMI 21

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..... CE BADAR DURREZ AHMED HON'BLE MR JUSTICE RAJIV SHAKDHER BADAR DURREZ AHMED, J (ORAL) 1. This appeal is directed against the Tribunal's order dated 20.01.2006 in ITA 2708/D/2002 pertaining to the assessment year 1998-1999. For the year ending 31.03.1998, the assessee had provided for a sum of Rs 72 lacs under the head 'salaries and wages', pending revision. The Assessing Officer found that this .....

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..... was the position as existing on the date of the balance sheet, i.e., 31.03.1998. It was further contended that it was only subsequently that the Board of Directors of the assessee decided to give effect to the pay revision from 01.07.1997. This decision was taken only in the Board meeting held on 28.09.1998. 4. On behalf of the assesee it was urged that there was enough indication that the matte .....

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..... d by the minutes of 65th meeting of the Board of Directors held on 28.09.1998 under agenda item No. 6. The said minutes have been placed before us in the appeal paper book. We note that under agenda item No. 6, paragraph 6.1 of the said minutes clearly indicates that the Board considered the matter in depth, particularly, the issue whether the pay scales should be revised with effect from 01.07.19 .....

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..... ility accrued for the first time during the financial year 1998-1999 when the decision was taken to revise the pay scales with effect from 01.07.1997 instead of 01.07.1999 as per the earlier decision. 6. Although the Tribunal took the view that no notification had been issued by the Central Government indicating the approval to Accounting Standard 4 in terms of Section 145(2) of the Income Tax Ac .....

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..... equently, the Tribunal returned a finding of fact that the liability itself had been incurred by the assessee only during the financial year 1998-1999. 7. In view of these findings, the decision arrived at by the Tribunal cannot be faulted. No substantial question of law arises for our consideration. The appeal is dismissed.   BADAR DURREZ AHMED, J   RAJIV SHAKDHER, J
Case laws, .....

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