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TMI Blog2024 (11) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... lone. 3. Learned counsel for the Revenue has invited attention to the decision of this Court in Commissioner of Income-tax vs. Punjab Bone Mills, reported in [1998] 96 Taxman 555 (Punjab & Haryana) wherein identical question was referred vide reference No. 37/1984 relating to the assessment year 1978-79. 4. The question No. 2 in the said reference is the same as question No. 1 referred herein which is as under: "1. Whether on the facts and in the circumstances of the case, the ITAT is right in law in holding that cash incentive accrues to the assessee on the date when the application for claim is made to the Competent Authority?" 5. The Court after examining the law relating to accrual of income held as under: "26. It would appear fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of the High Court was challenged before the Supreme Court by the Department titled as Commissioner of Income-tax vs. Punjab Bone Mills, reported in [2001] 119 Taxman 781 (SC), wherein the Apex Court vide its order dated 19.07.2001 passed the following order: "1. No interference with the judgment and order of the High Court - CIT v. Punjab Bone Mills [1998] 232 ITR 795 (Punj. & Har) is called for. Having regard to the first question, considering how that question is worded, it is properly answered. As to the second question, the relevant material in regard to the cash incentive for exports does not appear to have been placed before the Tribunal. Without that material, it is not possible to decide that the contention of the revenue is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m to cash, system but the dispute was to which of the cash, system but the dispute was as to which of the cash incentive received could be said to accrue or arise within the accounting period ended on 31.3.1978 relevant to the assessment year 1978-79. However, the CIT (Appeals) dealt with the issue in the particular fashion and ultimately upheld the action of the ITO. The assessee came in appeal to the Tribunal and the Tribunal has dealt with the issue in paras 5, 6 & 6. 1 of its order, which are quoted below: "5. The last contention of the assesse is about the addition of Rs 2,4,000/- on account of cash incentive in the asstt. year 1978-79. The CIT (Appeals) has dealt with this point in para 4 to 6 of his order. The assessee filed a stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merely related to the quantification of amount payable. Cases cited by the ITO in the assessment order were relied upon in support of this submission. It was stated that the facts of Madras decision in 127 ITR 572 were altogether different and that decision would not apply in the case like that of the assessee. 6.1 We have considered the rival submissions. The assessee on our inquiry informed that he could not make available the cash incentive scheme applicable to the assessee but Shri Anant Narayanan submitted on the basis of the chart, the particulars of which are reproduced above, that a claim for cash incentive admissible is to be filled at the end of the each quarter by the assessee and it will be admissible only when the assessee m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . "5. The second objection of the Revenue is about the relief of Rs. 2,40,083/- given by the CIT (A) in the account of cash incentive. The assessee has also objected in its appeal urging that point regarding cash incentive had not been properly appreciated by the CIT (A). Our attention was invited to the fact that this very issue arose for the preceding assessment year and the Tribunal dealt with it in paras 5,6, and 6.1 of its order. We will consider it proper to set aside the finding of the lower authorities on this issue and restore it to the file of IAC (Asstt.) for deciding it afresh on the basis approved by the Tribunal for the assessment year 1978-79. This will dispose of the ground of appeal raised by the assessee also. 6. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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