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Documents citing Income-Tax Officer vs Andhra Pradesh Paper Mills Ltd. on 11 April, 1991

Deputy Commissioner Of Income Tax vs Aggarwal And Modi Enterprises (Cinema ... on 31 October, 2002

19. The next decision cited by the learned counsel is the Special Bench decision by Hyderabad Benches of the Tribunal in the case of ITO v. Andhra Pradesh Paper Mills Ltd. (supra). In this case, assessee's claim for deduction on the basis of revised rates of royalty charged by the State Government for supply of bamboo were challenged by the assessee by way of writ petition before the High Court. The learned Tribunal allowed the deduction on the ground that the assessee had accepted the revised rates of royalty and the liability accrued the moment bamboo was felled and collected by the assessee. The decision involves entirely different set of facts under which a finding of fact has been recorded by the Tribunal that revised rate of royalty had been accepted by the assessee.
Income Tax Appellate Tribunal - Delhi Cites 18 - Cited by 35 - Full Document

New Delhi Hotels Ltd. vs Income-Tax Officer on 26 August, 1991

6.5 The claim of the assessee is, that, its case is squarely covered by the special bench decision in Andhra Pradesh Paper Mills Ltd.'s case (supra), which we shall now evaluate. In this case, the agreement between the State Government and the assessee, by which the assessee was to supply bamboo on payment of royalty, which was to be revised after five years. The, term of five years ended on Sept. 30, 1980. The State Government intimated the assessee on Feb. 6, 1981, that, the Government is still working the modalities of the revision of royalty and desired that, the assessee provide an undertaking that, it shall pay the royalty as per the revised rates as and when it was finalized. This was accepted by the assessee on Feb. 14, 1981. The revised rates of royalty was intimated on Nov. 14, 1981. The assessee while closing its accounts of June 30, 1981, provided for the royalty based on the revised rates and claimed deduction, on the premise that, it was following mercantile system of accounting. The decision on this claim was that, since the assessee had accepted by giving the undertaking to pay the royalty based on the revised rates as and when determined, it had unequivocally accepted the liability, which was merely quantified subsequently, the liability had accrued and hence was allowable. This decision, to our mind does no help to the assessee's case. Unlike in the special benches case, in the present case, the assessee desired modification of the lease-agreement, which changed the very substratum of the agreement and not merely the rate of premium. Furthermore, the assessee in its application requesting for the modification of the lease-agreement had never offered that, it would abide by the terms of modification suggested by L & DO. Further, every action of the assessee in the instant case was totally open and it did not accept any of the terms and conditions excepting mentioning it in so many words that, it had no choice but to accept, but, not performing the promise demanded by L & DO. Therefore, the said decision of the special bench has no bearing at all to the assessee's case.
Income Tax Appellate Tribunal - Delhi Cites 4 - Cited by 1 - Full Document
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