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TMI Blog2023 (7) TMI 1525X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal"]. 3. The appellant/revenue has proposed the following questions of law: "(i) Whether on the facts and circumstances of the case and in law, Id. ITAT erred in deleting the addition of Rs. 1,02,88,91,000/- made by Assessing officer on account of unearned revenue ignoring the fact that Accounting Standard cannot override the provision of the Income Tax Act, 1961? (ii) Whether on the facts and circumstances of the case and in law. Id. ITAT erred in deleting the addition of Rs. 57,93,45,721/- made by Assessing officer on account of provision for liquidated damages?" 4. Insofar as the first question is concerned, it would be convenient to refer to paragraph 14 of the impugned order which discloses the breakup of Rs. 1,02,88,91,00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or tax in the subsequent years as exhibited in chart elsewhere, we are of the considered opinion that addition of Rs. 1,02,88,91,000/- is uncalled for and deserves to be deleted. Thus, Ground No. 2 is allowed". 6. From a reading of the impugned order two findings of fact emerge. (i) First, the money received by the respondent/assessee was offered for imposition of tax only when services were rendered. (ii) Second, this was an accounting practice followed consistently for several years. (iii). Lastly, since the tax rate remained the same, no loss was caused to the revenue by the respondent/assessee offering the aforementioned amount for the tax in the subsequent period. 7. This position of law appears to have been, in a sense, recog ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x authorities, in a matter such as this where the deduction is obviously a permissible deduction under the income tax Act, raise disputes as to the year in which the deduction should be allowed. The question as to the year in which a deduction is allowable may be material when the rate of tax chargeable on the assessee in two different years is different; but in the case of income of a company, tax is attracted at a uniform rate, and whether the deduction in respect of bonus was granted in the assessment year 1952-53 or in the assessment year corresponding to the accounting year 1952, that is in the assessment year 1953-54, should be a matter of no consequence to the Department; and one should have thought that the Department would not frit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r repaid, whether or not any services were rendered.." [Emphasis is ours] 8. Therefore, the proposed question no. (i) in our opinion does not require consideration. 9. Insofar as the proposed question no. (ii) is concerned, we have in another appeal of the revenue i.e., ITA 761/2018, remanded the matter to the Tribunal for reconsideration. 9.1. We intend to do the same in the instant case as well, since the Tribunal, in the instant case, has followed decision rendered by it in AY 2004-05, which is the AY that is involved in the matter we have remanded for reconsideration. 10. Therefore, the impugned order is set aside on the issue concerning liquidated damages. 10.1. The directions contained in our order passed today i.e., 28.07.2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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